Dangote Cement reports 60% increase in before-tax profits in FY2017

Dangote Cement Tuesday released its full-year earnings report, which indicates that the cement manufacturer recorded a profit before tax (PBT) of N289.6 billion, representing a 60 percent increase over the N180.9 recorded in the preceding year.

This is despite a fourth-quarter after-tax loss of N16.1 billion mainly on account of significant increase in tax obligations and losses in other comprehensive incomes (OCIs) for the quarter.

The full year report specifically indicates that sales were up by 31 percent year on year (y/y) to N805.6 billion, with profit after tax rising by 43 percent to N204.2 billion from N142 billion previously.

The report equally indicates that inventories rose by 14.1 percent to N94.6 billion from 83.9 billion in 2016. The company’s cash holdings grew by 45 percent to N168 billion as against the N115.7 held in 2016.

The company assets rose marginally by 8.9 percent to N1.67 trillion from N1.53 trillion in the full year 2016.

The management of the company has therefore proposed a dividend of N10.50, representing a dividend yield of 6.2 percent for shareholders whose names appear on the register of members as the close of business on Friday, April 13, 2018.