Pricing boosts DANGCEM’s revenue by N1.38bn in 2021

By Chinwendu Obienyi

Following high demand and pricing of its product, Dangote Cement Plc on Tuesday, said that its revenue increased by 34 per cent from N1.03 billion recorded in 2020 to N1.38 billion in 2021.

 The company’s Consolidated and Separate Financial Statements for December 2021 filed at the Nigerian Exchange Limited (NGX), shows that the Group’s net profit rose by 32 per cent to N364 million from N276.1 million recorded in corresponding period of 2020, while profit before tax (PBT) increased by N538.36 million from N373.3 million.

 The Group’s sales volumes in Nigeria grew stronger by 16.8 per cent yea-on-year (y/y) in 2021 as against 12.9 per cent recorded in 2020, reflecting continued gains from the pick-up in activities in the real estate sector, led by individual homebuilders.

 Furthermore, the results showed that the Group’s Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew by 43.5 per cent per cent as the topline growth (32.5 per cent y/y) overshadowed the increases in the cost of sales ex-depreciation (+22.9 per cent y/y) and operating expenses ex-depreciation (+30.7 per cent y/y).

 Similarly, the EBITDA margin rose by 3.3 ppts to 49.4 per cent as analysts pointed out that the expansion in the group’s 2021FY EBITDA margin was buoyed by the substantial increment in price per tonne in Nigerian operations (+18.1 per cent y/y), which neutered pressures emanating from cash cost/tonne (+38.9 per cent y/y in 2021 FY). In addition, margins received a boost from the improvement in OPEX/sales ratio (16.7 per cent in 2021FY vs 18.3 per cent in 2020 FY).