Nigeria’s biggest company by market value, Dangote Cement Plc, has reported a profit decline of N190 billion at Full Year 2019 compared to the corresponding period of 2018.
The comprehensive account of the cement maker’s performance in the period under review was detailed in Dangote Cement Plc Consolidated and Separate Financial Statements December 31, 2019, posted on the website of the Nigerian Stock Exchange on Wednesday.
Revenue fell marginally by 1.1 per cent, moving from N901.213 billion in FY2018 to N891.671 billion in FY2019.
Dangote Cement’s Profit Before Tax (PBT) nosedived to N250.479 billion at the end of last year compared to N300.806 billion in the same period of 2018, signalling a 16.7 per cent contraction.
Profit After Tax (PAT) tumbled by 48.6 per cent from N390.325 billion in FY2018 to N200.521 in FY2019.
The company’s Earnings Per Share (EPS) plunged from N22.83 to N11.79, translating to a 48.4 per cent decline.
The firm’s underwhelming performance stemmed, particularly from the huge shortfall in its net income, caused primarily by negative growth in its Income Tax Credit from N89.519 billion in FY2018 to –N49.958 billion in FY2019.
Partly responsible for this decline in profit was the firm’s worsening operational efficiency, which made Selling and Distribution Expenses to leap from N136.925 billion in FY2018 to N160.645 billion in FY 2019.
Another factor that contributed to Dangote Cement’s drop in profit was the increase in Administrative Expenses from N52.501 billion in FY2018 to N54.124 billion in FY2019.
Africa’s largest cement maker had last month got shareholders’ nod to buy 10 per cent of its outstanding shares back. A statement from the company said the process would be completed in 12 months.
In the light of its FY2019 results, Dangote Cement is proposing a final dividend of N16 per share.
If approved, the dividend would be paid to shareholders whose names appear in the members’ register on May 25.
The register will be closed on May 26.
The qualification date is scheduled for May 25.
Potential investors willing to position themselves for the dividend payment may consider investing in Dangote Cement’s shares on or before this date.
The payment date is June 16.
Dangote Cement’s Price to Earnings ratio is 6.9 and is currently trading above its fair value according to Simply Wall St.
With outstanding shares totalling 17,040,507,405, its market capitalisation as of today is N2.897 trillion.
The company’s dividend yield is 10 per cent.
With a presence in 10 African countries, Dangote Cement’s Nigerian operations include three manufacturing plants: Obajana Cement Plant in Kogi State, Gboko Cement Plant in Benue State and Ibese Plant in Ogun State.
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