BY David Oputah
Dangote Cement Plc on Thursday announced a profit-after-tax of N159.5 billion for the year ended December 31, 2014.
Analysis shows that its profit after tax fell by about 20 percent compared with N201.2 billion posted in 2013, while gross profit also fell by N7.1 billion to N248.6 billion, compared with N255.7 billion in 2013.
However, its revenue at the end of 2014 was N392 billion, as it added N6 billion to its N386 billion recorded in 2013, despite the challenging conditions of the erratic fuel supply and prolonged rainy season that affected revenues and profitability in Nigeria.
According to the report, the company paid an income tax of N25.2 billion in 2014, as against a tax credit of N10.5 billion 2013 due to the expiration of tax exemptions on some lines of the company’s business.
Despite the reduction in profit, the directors have recommended a dividend of N6.00 per share to its shareholders, which translates to a yield of 3.9 per cent and payout ratio of 63.5 per cent.
Dangote Cement, controlled by Africa’s richest man, Aliko Dangote, is also expanding and has announced the commencement of operations at its new plant in Pout, Senegal.
The firm said in a statement that the plant would meet the cement needs of Senegal, Mali and the Gambia, among others.
“The new plant, located in the Pout district of Senegal, is about 75 kilometres from Dakar, the country’s capital, and has a nominal capacity to produce 4,000 metric tonnes per day and 1.2 million metric tonnes per annum,” it said.
The plant, which had so far gulped around $250m, is expected to create more than 1,000 jobs, with a total production capacity of 1.5 million metric tonnes annually.
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