Dangote Cement PLC delivered an impressive performance in Q3-2020 with revenue up by 12.01% boosted by a 5.63% and 6.59% growth in cement production volume and sales volume respectively. DANGCEM production volume and sales volume advanced from 17.4mn tones to 18.40mn tones while sales volume moved from 18.02mn tones to 19.21mn tones.
Hence, revenue increased to N761.44bn compared to the N679.79bn in Q3-2019.
Improved Cost Management Boosted Gross Profit
A look at the cost margin shows improved cost management with a 2.25% decline in cost margin to 41.70% following a 9.49% increase in the cost of sales from N290.02bn to N317.54bn. Consequently, gross profit advanced by 13.89% from N389.78bn to N443.90bn in Q3-2019 to Q3-2020.
Profitability improved on Lower OPEX and Finance Cost
Dangote Cement operating profit advanced by 24.38% to N287.93bn from the N231.48 recorded in Q3-2019 following a 1.70% declined in selling and distribution expenses. Similarly, a 52.76% declined in finance cost caused profit before tax to advanced by 37.58% while profit after tax increased by 35.20%.
Notably, Profit before tax increased from N197.68bn to N271.96bn while profit after tax moved from N154.35bn to N208.69bn showing improved profitability as the net profit margin advanced by 20.70% to 27.41%.
Consequently, earnings before tax advanced by 34.62% from N9.10 to N12.25.