Dangote Cement’s nine-month profit jumps 31% as revenue hits N3.8 trillion

Dangote Cement reported a 31.2 per cent surge in internet profit for the 9 months to September, in comparison with the identical interval final yr, pushed by a substantial improve in gross sales, in accordance with the newest company outcomes of Sub-Saharan Africa’s greatest cement maker.

The company posted a 19.6 per cent rise in turnover, which climbed to N3.8 trillion, boosted by improved revenue from the gross sales of cement and clinker.

Nigeria, its main market, accounted for 70.8 per cent of complete gross sales, whereas its pan-African operations contributed the remainder.

Dangote Cement, with a manufacturing capability of 55 million tonnes every year, has footprints in 11 African nations, together with Cameroon, Ethiopia, Zambia, Tanzania, Cote d’Ivoire amongst others.

Cost of gross sales as a proportion of revenue declined to 36.8 per cent from 40.8 per cent, softening the affect of price pressures on gross profit.

Administrative bills superior by 11.7 per cent to N226.1 billion, whereas promoting and distribution bills jumped by 23.6 per cent to N618.9 billion, the latter pushed by increased haulage prices.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), a key indicator which measures the core working profit of a enterprise, stood at N1.8 trillion, up from N1.4 trillion a yr in the past.

That places EBITDA’s margin at 46.8 per cent, in comparison with 45.3 per cent in the identical interval of final yr.

Strengthening profit, the corporate in the reduction of finance prices to N120.8 billion from N286 billion, following a pointy discount in curiosity bills.

Profit earlier than tax was up by 41.5 per cent at N1.5 trillion, whereas profit after tax superior to N974.8 billion from N743.3 billion.

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Total property stood at N6.2 trillion, relative to N6 trillion as of the top of final yr.

Dangote Cement is on observe to finish a cross-border itemizing on the London Stock Exchange along with a main itemizing in Lagos, the place its market capitalisation stood at N22.6 trillion on the open of buying and selling on Wednesday.

The firm added Goldman Sachs and UBS Group AG as bookrunners for the itemizing, which is deliberate for November, in accordance with a Bloomberg report earlier this month.

If plans work out, will probably be quoted underneath the worldwide business firms secondary itemizing framework, the corporate stated in May.

Last month, FTSE Russell named Dangote Cement among the many ten Nigerian firms it added to its Frontier Index Series.