Thursday , November 18, 2021 / 12:50 PM / Adaeze Nwachukwu, Proshare Research / Header Image Credit: Dangote Cement Plc
Proshare Nigeria Pvt. Ltd.
Dangote Cement Plc is the second listed company on the Nigerian Exchange Limited (NGX) to record a revenue of N1trn on the heels of MTN, the leading stock with over one trillion Naira (SWOOT) in turnover. Dangote’s 9month 2021 result shows double-digit revenue growth, despite a difficult macroeconomic environment. The Group has demonstrated resilience in its operations which has translated to significant improvement in its earnings.
A DuPont review of the company, showed that gross profit margin was a major driver of the Company’s rising equity return (ROE). With the limestone crusher’s share buyback programme (in other words, repurchase), leading to a reduction in its market free float , the company’s earnings per share (EPS) is expected to rise notably by the year-end December 31, 2021.
Key Highlights Revenue was up Y-o-Y by +34.24% to N1.02trn from N761.44bn in 9months 2020.
Sales volume was up by +15.40% to 22.16 MMT in 9months 2021 from 19.21 MMT
Cost of sales was up by +27.04% to N403.39bn from N317.54bn in 9months 2020
Gross profit rose Y-o-Y by +39.40% to N618.79bn from N443.90bn in 9months 2020
EBITDA edged up by +45%to N514.79bn from N355.02bn in 9months 2020
EBITDA margin increased to 50.40% from 46.60%
Finance income fell Y-o-Y by -24.44% to N13.85bn from N18.33bn Finance cost increased by +41.96% to N48.69bn in 9months 2021 Profit before tax (PBT) increased Y-o-Y by +49.10% to N405.49bn from N271.96bn in 9months 2020 Total asset inched up +27.71% to N2.25trn from N1.85trn in 9months 2020 The group’s earnings per share (EPS) increased by +32.49% to N16.23 from N12.25 in H1 2020. Return on equity rose from 33.24% in 9months 2020 to 44.79% in 9months 2021. Revenue-A Rising Kite DANGCEM’s revenue rose by +34.24% Y-on-Y to N1.02trn from N761.44bn in 9months 2020. The rise was supported by an increase in volumes from the Nigerian market and the Pan African segment of the Group. The Group’s production capacity rose Y-on-Y by +6.59% to 48.55m tonnes, production volume also grew by +14.61% to 21.08m in 9months 2021.Quarterly (Q-on-Q), revenue fell by -7.34% to N331.64bn in the third quarter (Q3) 2021 from N357.89bn in the second quarter (Q2) 2021, reflecting macroeconomic difficulties and falling demand.9months 2017 recorded the highest revenue growth of +36.53%, while […]
