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Dangote Cement To Pay N97bn In Corporate Tax

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Dangote Cement Plc has maintained its position as a major contributor to the economy, with a tax charge of N97 billion for the financial year that ended on December 31, 2020.

The company also proposed a dividend of N16 per share.

According to the cement company group’s audited results released on the Nigerian Stock Exchange (NSE), the tax charge represents an increase of 95 percent over the sum of N50 billion recorded in 2019.

Dangote Cement’s Nigerian operations during the period sold 15.9mt for the year 2020, compared to 14.1Mt in 2019.

This includes both cement and clinker sales, which implies a 12.9 percent growth for the full year 2020.

On the domestic sales alone, Nigerian operations sold 15.6Mt, up by 14.3 percent year on year resulting in an increase in market share.

Revenues for the Nigerian operations increased by 18.0 percent to N720.0 billion, owing to demand in the domestic market.

This volume growth was enhanced by a successful innovative national consumer promotion, ‘Bag of Goodies – Season 2’, and lower rains in the third quarter compared to the previous year.

In the said period, the cement group inaugurated its gas power plant in Tanzania.

The cement company recorded strong performance not only at the top line but also at the bottom line, owing to cost saving measures.

Despite inflationary pressures and foreign exchange volatility, disciplined cost control measures enabled the company to maintain a relatively flat cash cost per tonne.

The cost control measures include improved plant efficiency, better fuel mix and general overhead optimisation.

Reacting to the development, chief executive officer, Dangote Cement, Michel Puchercos, said, “2020 was a good year for Dangote Cement across board. Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance and successful buyback programme.

“We increased our capacity by three Mt in Nigeria, inaugurated our two export terminals and our gas power plant in Tanzania. All these were achieved whilst we focused on protecting our people, customers and communities from the impact of the pandemic.

“Dangote Cement recorded strong top-line growth supported by strong cement demand. Profitability was further bolstered by our disciplined cost control measures in what we believed to have been a highly inflationary and volatile year. These measures resulted in a 37.7 per cent increase in profit after tax to N276.1 billion.”

Looking ahead, Puchercos said, “We have strengthened our Alternative Fuel initiative which focuses on leveraging the circular economy business model and reducing exposure of our cost base to foreign currencies fluctuations. We continue to embed Dangote Cement’s seven sustainability pillars into every aspect of our operation and culture.”

 

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