Dangote Cement Plc has announced its financial year 2017 results with a group revenue of NGN805.6 billion increased by 31% compared to the position in 2016 and Profit After Tax of NGN204.3 billion,representing 43% of the previous years.

The board of the company has recommended a dividend per share of NGN10.50 equating to a yield of 4% on the latest price.

According to the release the company’s EBITDA came in at NGN388.2 billion an increase of 51% and ahead of consensus’ NGN380.3 billion
Sales volume, at 21.9 million tonnes, was lower by 7% as against 2016 Financial Year.

Nigerian revenue and EBITDA grew by 30% and 52% respectively, while net profit contracted by 17%. Sales volume was down by 16% while effective tax rate (ETR) was higher by 1200 bps.

While Non-Nigerian revenue and EBITDA grew by 34% and 45% respectively, while loss after tax (LAT) reduced from NGN163 billion in 2016 to NGN50.4 billion.As Volume grew by 9%, gross and EBITDA margins improved, while ETR was lower by 200 bps.
For Q4 2017, Group revenue and EBITDA grew by 16.8% y/y and 20% y/y respectively, while net profit contracted by 79% y/y.
PBT grew by 116% y/y, so the significantly higher effective tax rate of 84% was responsible for the earnings contraction.

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