Irrespective of the challenging environment in the Nigerian economic space and the strain in gas supply to the company’s lines, Dangote Cement (DANGCEM) has assured shareholders of sustained quality dividend payment for the 2016 financial year.
This is as stock brokers and capital market stakeholders asked for interim dividend from the company in line with its impressive half year 2016 performance.
Mr. Onne Van- Der Wejide, the company’s new executive Chairman disclosed this at the Nigerian Stock Exchange in his presentation of facts behind the figures for the 2015 financial year and the half year audited results for year 2016.
He said that giving valuable returns to shareholders of the company remained the driving force behind its expansion drive across Africa as well as the initiation of the alternative, less expensive coal energy supply to augment gas supply which has remained expensive and virtually unavailable.
Onne Van- Der revealed that the recently released half year result of the company showed that irrespective of the challenging operating environment, sales grew by 7.9% q/q, and 19.0% y/y
The 2016 half year result has recorded strong growth in turnover, increase in costs as well as gains from forex position.
The result further showed a reflection of gains from the company’s long FX position on bottom-line performance and sustained top line growth, mainly impacted by both the Nigerian market and ex-Nigerian operations. PBT grew by 29 per cent q/q, while recording 20% y/y buoyed by forex gain.
The company’s Chairman revealed that DANGCEM plans to protect margin going forward by pursuing cost reduction through substitution of imported coal with local coal, which, in addition to expected coming on stream of coal mills in Gboko and Ibese plants, will boost planned reduction in opex/cost of sales going forward.
He said that for the period, cost of sales grew by 64.7 per cent, to N139.2 billion from N84.5 billion in 2015 half year. Gross profit margin declined by 3 per cent, from N157.7 million to N153 million, profit before tax dropped to 3 per cent from 128.7 billion to N124.9 billion
Profit for the period dropped by 15.1 per cent, from N121.8 billion in 2015 to N103.4 billion at the end of the first half of 2016 audited accounting period, while Earning before interest, tax depreciation and amortization (EBITDA) also dropped by 10.2 per cent, to 60.9 per cent in 2015 to 45.4 percent in 2016 H1.
