Dangote Cement Revenue Reaches N1 trillion

 The biggest cement manufacturer in the country, Dangote cement, just declared a record high revenue of N1.03 trillion in its financial statement for the year 2020. This makes it the second Nigerian listed entity to go beyond the N1 trillion line, just after MTN achieved the feat in 2020.

On Wednesday, shares of Dangote Cement grew 2.3% to end the trading day on the Nigerian Stock Exchange at the price of N225.

Due to the difference in revenue in its operations, the company's total revenue grew 16 percent year-on-year to reach N1.03 trillion in 2020 compared to the N891 billion which was recorded in 2019. 

The growth came as a result of the high demand for cement due to the booming real estate sector and the development of new infrastructure across the country, especially the construction of new roads. 

In the area of their Pan African Operations, the top-line expansion of 12.7 percent year-on-year rose a total of 4.4 percent to 9.9 million metric tonnes due to the conversation difference resulting from the devaluation of the Nigerian naira.

 The company's performance depicted an increase of 49 percent in its profit before tax year-on-year, from N250.47 billion in 2019 to N373 billion in 2020. The related profit before tax margin improved 36 percent to 8.0ppts due to the company's attempt at cost-effectiveness.

 Dangote Cement witnessed its strongest year so far as earnings before interest, taxation, depreciation, and amortization went up to N478.1 billion, a 20.9 percent difference from 2019=, in-spite of the tough economic conditions of 2020. Profit After Tax rose to N276.07 billion, a 37.7 percent difference while the dividends paid to shareholders also rose by nearly 37 percent to N16.14.

Dangote Cement’s production capacity expanded to 48.55 million metric tonnes per annum to 45.55 million metric tonnes per annum, cementing the company’s position as the largest cement manufacturer on the continent.

Dangote Cement’s production capacity expanded to 48.55 million metric tonnes per annum to 45.55 million metric tonnes per annum, cementing the company’s position as the largest cement manufacturer on the continent.

The cement giant announced in a press release on the 25th that it had received approval for the company's board for debt funding options in the capital market. According to the company, it is taking advantage of all sources of debt funding and other available options as this will be a useful catalyst in its growth as it plans to expand operations.

The company plans to use the funding for its expansion plans, debt refinancing, and the growing need for working capital as operations expand.