20 July 2018 ( Lagos ) : Dangote cement announced its financial results for the half year ended June 30, 2018 on Friday, showing profit after tax (PAT) of N 113.2 bn.( on a group level )

According to the audited results, Dangote posted a group level revenue of N 482.4 billion in 2018, up from N412.7 billion in the corresponding period of 2017. They increased their production capacity by 1,500,000 tonnes, while their cement sales volume increased by 853,000 tonnes

An analysis of the results indicated that cost of sales increased by 11.2 per cent from N 177.5 billion to N 197.6 billion. Gross profit increased by 21.14 % and stood at N 284.84 billion, compared with N 235.12 billion in 2017. Selling and distribution expenses went up by 19.7% from N 51.9 billion to N 62.1 billion, mainly due to haulage expense; while administrative expenses increased 18 %. As a result operating profit improved by 22.64 % from N 200.5 billion to N 163.49 billion in 2017.

Their finance income dramatically reduced by 78.24 %, due to the foreign exchange loss incurred, a gain of 11.2 billion in 2017, was changed to a loss of 2.9 billion in 2018. To compensate for it, their finance costs also reduced by 23.9 %, mainly due to decrease in interest expense. Consequently, their profit before tax only marginally increased by 19.2% from 155.5 billion in 2017 to 185.5 billion. jumped, while PAT only increased by 3.1%, due to significant rise in the taxation cost as well.

In terms of operating activities, the group turned an exchange loss (on borrowings and non-operating assets) of N 16.6 billion to a gain of N 1.4 billion.

From a segmental group level, their performance in Nigeria increased by 18.08% ( based on revenue ), whereas in Pan-africa, it increased by 11.44% ( based on revenue ). From an EBITDA standpoint, Nigerian business increased by 19.34%, whereas the Pan- Africa business surged by 31.8%. But, in case of profit after tax, where the Nigeria business gained 10.31% coming to 160 billion from 145.6 billion in 2017; the Pan- Africa business’ PAT declined by 449.9%, going from a gain of 7.4 billion in 2017 to a loss of 26.04 billion in 2018.

Reporting for EasyKobo on Monday, 23 July 2018 in Lagos, Nigeria