Dangote Cement revenue hits N292bn in half year 2016
By Kayode Ogunwale

 

Despite harsh operating environment facing manufacturing companies in Nigeria, Dangote Cement Plc has recorded significant improvement in its revenue for the half year 2016. The cement producing company’s interim financial statements ended 30 June, 2016 shows that, the group revenue surged by N49.976 billion, represented 20.63 per cent, from N242.215 billion it made during the same period of 2015 to end half year 2016 with N292.191 billion.

The leading cement producer in the country earned N292.130 billion from sales of cement during the period as against N242.096 billion in comparison period of 2015. While it earned N61 million from sales of other products in half year 2016 as against N119 million revenue from sales of other product in 2015 half year.

Nigeria market still remain significant to the group as it earned N216.617 billion in half year 2016 against N49.870 billion and N26.136 billion it got from West & Central Africa and South & East Africa respectively.

As it improved Nigeria revenue, West & Central Africa and South & East Africa rose by N32.791 billion (192 per cent) and N8.817 billion (51per cent) separately.

The group however spent 47.64 per cent of its revenue on cost of sale in 2016 review period compared to 34.89 per cent spent during the same period of 2015. The cost of sale gulped N139.187 billion in 2016 from N84.501 billion it spent in half year 2015. Out of this, it’s financial costs took N118.083 billion in comparison with N24.381 billion it spend on the same purpose in half year 2015.

The group profit before tax stood at N124.890 billion in 2016 from N128.726 billion it made I. 2015.

In the same vein, profit after tax of Dangote Cement Plc stood at N103.420 billion during the review period of half year 2016 from N121.808 billion in 2015.

The aggressive expansion of Dangote Cement reflected in its total assets at the end of June 2016 which stood at N1.371 trillion from N1.111 trillion in December, 2015.

Currently, Dangote Cement production capacity is 42.550 million tones from 39.550 million tones as at June 2015.

Meanwhile, the cement production volume rose by 4.559 million tones, translating to 57.84 per cent from 7.882 million tones in June 2015 to 12.441 million tones at the end of half year 2016.