The results released to the Nigerian Stock Exchange (NSE) showed that Dangote Cement recorded a turnover of N298.45 billion in 2012, indicating a 23.63 per cent increase over N241.41 billion recorded in the corresponding period of 2011.
The company’s profit before tax (PBT) grew by 19.22 per cent to N135.65 billion from N113.78 billion in 2011. Profit after tax stood at N151.93 billion, up by 25 per cent from N121.4 billion in 2011. Its administrative expenses declined by 56.7 per cent to N14.65 billion from N22.9 billion in 2011.
Analysis of the results showed that although Q4 2012 sales of N77.4 billion were up 15 per cent year-on-year (yoy), PBT grew much faster, by 57per cent yoy due to a combination of 865bp expansion in gross margin and a marked reduction in net interest cost to N331million compared with N4.0 billion in the comparable period of 2012.
In addition, a tax credit of N14.2 billion (compared to N8.7 billion Q4 in 2011), led to an even stronger growth in PBT of 59 per cent yoy.
The directors have recommended a dividend of N3.00 per share, up marginally from N1.20 paid the precious year. The dividend would be paid on June 3, 2013 after the company’s annual general meeting on May 23, 2013.
“Compared with our estimates, although sales came in around seven per cent higher than what we were looking for, PBT missed our forecast by 14 per cent largely due to operating expenses of N14.3 billion coming in significantly higher than the N6.9 billion that we had modeled,” said analysts at FBN.
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