Dangote Cement recently released its half year 2021 result. Earnings for the period expanded by 51.91% YoY to NGN 191 billion. This was driven by an increase in the revenue (+44.8% YoY to NGN 690.5 billion)
According to analysts from Alpha Morgan Capital, the growth in revenue is attributed to rise in volumes sales (+26.1% YoY) to 15.3Mt. A breakdown of the volumes’ growth revealed a 33.2% YoY increase in Nigeria’s trades to 9.9Mt whilst the Pan Africa volumes rose by 15.5% to 5.5 Mt
They said although cost of sales expanded by 36.40% YoY to NGN 276.1 billion, the increase was slower than revenue. Consequently, gross margin improved marginally by 2.45bps YoY to 60%
Operating expenses increased by 14.07% YoY to NGN 118.28 billion, whereas Opex to revenue declined by 4.61ppts YoY to 17.13%
Finance cost increased by 45.54% YoY to NGN 30.35 billion over the review period
Overall, profit before tax stood at NGN 281.25 billion (+72.70% YoY) whilst profit after tax expanded by 51.91% YoY to NGN 126 billion.