Dangote Cement Plc recorded strong sales and profit after tax for the first half of the year, according to the unaudited interim financial statements for the period ended 30 June 2021 released by the company.
The revenue for the period grew by 44.8% while the profit after tax rose by 51.9% compared to the first half of 2020.
Income statement
Dangote Cement Plc’s revenue in H1 2021 rose by 44.8% or N213.69 billion to N690.55 billion from N476.85 billion reported in H1 2020.
The gross profit increased by 51.0% or N140 billion to N414.43 billion from N274.43 in H1 2020. The gross profit margin equally increased to 60.1% from 57.6% in H1 2020.
The company’s administrative expenses rose to N30.71 billion from N26.05 billion in H1 2020 while the selling and distribution expenses increased by nearly N10 billion to N87.58 billion in H1 2021 from N77.64 billion in H1 2020.
Finance cost also increased by almost N10 billion to N30.35 billion from N20.85 billion in H1 2020.
Profit before tax rose by 72.7% or N118.4 billion to N281.25 billion in H1 2021 compared to H1 2020.
Dangote Cement Plc paid an income tax of N89.62 billion, this is N52.92 higher than N36.71 billion it paid in H1 2020.
Thus, the profit after tax increased by 51.9% or N65.49 billion to N191.63 billion in H1 2021 from N126.14 billion in H1 2020.
Earnings per share stood at N11.21, up from N7.45 recorded in H1 2020.
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Balance sheet
The total assets of the company increased by 2.6% or N52.23 billion to N2.07 trillion as at 30 June 2021, from N2.02 trillion held as at 31 December 2020.
Non-current assets represent 70.3% or N1.46 trillion of the total assets.
The major component of the company’s assets is Property, plant and equipment, which represents 67.3% or N1.4 trillion of the total assets.
Total liabilities also increased by 12.2% or N138.16 billion to N1.27 trillion. Current liabilities represent 72.7% or N923.66 billion of the company’s total liabilities.
‘Trade and other payable’ and ‘short-term financial liabilities’ are the major components the liabilities at N356.57 billion and N362.63 billion respectively.
On the other hand, total equity declined by 9.6% or N85.94 billion to N805.03 billion mainly due to a decrease in retained earnings to N697.82 billion from N779.27 billion as at 31 December 2020.
Cash flow
Net cash of N301.45 billion was generated from operating activities in H1 2021, up from N254.65 billion generated in H1 2020 from the same activities.
Net cash of N44.88 billion was used in investing activities, down from N91.06 billion used in H1 2020.
Net cash of N300.19 billion was used in financing activities in H1 2021, up from N219.97 billion used in the same period in H1 2020.
Cash and cash equivalents at end of the period stood N93.31 billion, over N40 billion increase compared to N51.01 billion at the end of H1 2020.
The share price of Dangote Cement Plc increased by 0.04% to close at N248.10 per share on Friday on the Nigerian Exchange. Year-to-date the share price is up by 1.31%.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.