Corporate Tax

Dangote Cement can pay greater than N97 billion in corporate revenue tax for the 2020 monetary 12 months

Tuesday, March 23, 2021/06th::58 PM / From the Dangote Group / Header Image Credit: Bloomberg

Africa’s largest cement producer, Dangote Cement Plc continued to make an important contribution to the economy with a tax charge of N97 billion for the fiscal year ended December 31, 2020 despite a proposed dividend of N16 per share.

According to the cement group’s audited results, published on the Nigerian Stock Exchange (NSE), the tax burden represents an increase of 95 percent compared to the N 50 billion total recorded in 2019.

Dangote Cement’s Nigerian business sold 15.9 million tonnes for the full year 2020 compared to 14.1 million tonnes in 2019. This includes both cement and clinker sales, which represents a growth of 12.9% for the full year 2020 means. Looking only at domestic sales The Nigerian company sold 15.6 million t, an increase of 14.3 percent compared to the previous year, which led to an increase in market share.

Revenue for the Nigerian operations increased 18.0% N.720.0 billion due to domestic market demand. This volume growth was reinforced by successful innovative national consumer advertising “Bag of Goodies – Season 2” and lower rainfall in the third quarter compared to the previous year.

The Nigerian business posted strong earnings before interest, taxes, depreciation and amortization (EBITDA) of N.421.4, which corresponds to a margin of 59%.

Dangote Cement posted a record high pan-African EBITDA of N.71.3 billion, an increase of 49.0%. In the reporting period, the cement company put its gas-fired power plant in Tanzania into operation. Consolidated earnings per share rose by 36.9% N.16.14.

Dangote Cement performed strongly not only in the upper but also in the lower range due to cost saving measures. Despite inflationary pressures and currency volatility, disciplined cost control measures allowed the company to maintain the relatively low cost of cash per ton. The cost control measures include improved plant efficiency, a better fuel mix and general overhead optimization

The CEO of Dangote Cement Plc, Michel Puchercos, said in his comments on the results: “2020 was a good year for Dangote Cement across the board. Several innovations made 2020 a productive year, such as our first clinker shipment, the first emission of Bonds and Successful Buyback Program. We increased our capacity in Nigeria by 3Mt, opened our two export terminals and opened our gas-fired power plant in Tanzania. All of this was achieved while focusing on our employees, customers and Protect communities from the effects of the pandemic.

“Dangote Cement had strong sales growth supported by strong cement demand. Profitability was further strengthened by our disciplined cost control measures in what we believe to be a highly inflationary and volatile year. These measures resulted in a 37.7% tax increase in profit N.276.1 billion.

“I am pleased to report that Dangote Cement had the strongest year in terms of EBITDA and the strongest year in terms of volume. Despite a challenging environment, Group volume increased by 8.6% and Group EBITDA over the course of the year by 20.9%.

“Looking ahead, we have strengthened our alternative fuels initiative, which focuses on leveraging the circular economy business model and reducing the risk of our cost base from currency fluctuations. We continue to incorporate Dangote Cement’s 7 pillars of sustainability into every aspect of our operations and our culture.

“We continue to be committed to the safety of our employees and communities by fully adhering to health and safety precautions in all of our areas of operation. We are focused on adapting to the rapidly developing markets in which we operate.”

Dangote Cement Plc is Africa’s largest cement producer south of the Sahara with an installed capacity of 45.6 million tons in 10 African countries and operates a fully integrated “quarry-to-customer” business with activities in the areas of manufacture, sale and distribution of Cement.

Dangote Cement has a long-term credit rating of AA + from GCR and from Moody’s due to its market leadership position, significant operational scale and strong financial profile. This is evident in the company’s robust operating and net profit margins compared to regional and global competitors. adequate working capital, satisfactory cash flow and low leverage.

Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate and a leading brand across Africa in companies such as cement, sugar, salt, beverage and real estate oil and gas, petrochemicals, fertilizers and agriculture.

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Proshare Nigeria Pvt.  GmbH.

Proshare Nigeria Pvt.  GmbH.

Proshare Nigeria Pvt.  GmbH.

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