Performance sustained by strong demand coupled with cost-saving measures
23rd March 2021: Dangote Cement PLC, Africa’s largest cement producer, released its audited results for the financial year ended 31st December 2020.
Financial Highlights
- Group revenue increased by 16% to ₦1,034 billion (2019: ₦891.7 billion).
- Group EBITDA up 20.9% to ₦478.1; 46.2% margin
- Record high Pan-Africa EBITDA of ₦71.3B, up 49.0%; 22.4% margin
- Earnings per share up 36.9% to ₦16.14
- Proposed dividend maintained at ₦16.00 per share
- Net debt of ₦337.3B; net debt/EBITDA of 0.71x
- Group net profit increased by 38% to ₦276.1 billion (2019: ₦200.5 billion).
- Group earnings per share increased by 37% to ₦16.14 (2019: ₦11.79).
- Company revenue increased by 18% to ₦720 billion (2019: ₦610.3 billion)
- Company net profit increased by 35% to ₦352.6 billion (2019: ₦261.4 billion).
- Company earnings per share increased by 35% to N20.69 (2019: ₦15.34).
Operating Highlights
- Group sales volumes up by 8.6% to 25.7 million tonnes
- Total Nigerian volumes up 12.9% to 15.9Mt; domestic volumes up 14.3% at 15.6Mt
- Pan-African volumes up 4.4% at 10.0 million tonnes
- Clinker shipment from Nigeria via the Apapa Export Terminal
- Commissioned Onne Export Terminal in Port Harcourt
- The commissioned gas power plant in Tanzania
Share buyback
- Completed a successful share buyback programme; repurchased 0.24% of shares outstanding
Michel Puchercos, Group Chief Executive Officer, said:
“Despite the impact of the COVID-19 pandemic, 2020 was a record year for Dangote Cement across the board. Several firsts made 2020 a productive year such as our maiden clinker shipment, maiden bond issuance and successful buyback programme. We increased our capacity by 3Mt in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All this was achieved whilst we focused on protecting our people, customers, and communities from the impact of the pandemic.
Dangote Cement recorded strong top-line growth supported by strong cement demand. Profitability was further bolstered by our disciplined cost control measures in what we believed to have been a highly inflationary and volatile year. These measures resulted in a 37.7% increase in profit after tax to ₦276.1B.
I am delighted to report that Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes. Despite a challenging environment, Group volumes for the year were up 8.6% and Group EBITDA was up 20.9%, at a 46.2% margin.
Looking ahead, we have strengthened our alternative fuel initiative which focuses on leveraging the circular economy business model and reducing exposure of our cost base to foreign currency fluctuations. We continue to embed Dangote Cement’s 7 sustainability pillars into every aspect of our operation and culture.
We remain committed to keeping our staff and communities safe by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate.”
