Nigeria’s and Africa’s largest cement company. Dangote Cement said it recorded a net profit of NGN186 billion for the fiscal year of 2016.
In its audited full year result, the company reported a gross revenue of NGN615 billion compared to NGN491 billion in the year before. The growth in revenue is a 25% year on year growth.
For a company that rely on the boom period in the economy, the result is a positive one given Nigeria’s recession and slowed down demand witnessed in the civil construction sector.
However, cost of sales for Dangote Cement rose by more than 50% to NGN323 billion compared to NGN201 bilion expended in the previious year.
It would be recalled that Dangote Industries, Dangote Cement’s parent company downsized some its expatriate workforce. However, administrative costs still rose to NGN36 billion compared to NGN32 billion in 2015.
The company’s asset base rose to NGN1,5 trillion versus NGN1,3 trillion in the previous year. However, total liabilities have also risen by more than 56% to NGN466 billion compared to NGN466 billion in the previous year.
Dangote Cement will have to keep an eye on its debt profile. Its total current liabilities shows that the company has a net debt of NGN512 billion compared to NGN200 billion in the previous year.
Corporate information (company website)
Dangote Cement is a fully integrated cement company and has projects and operations in Nigeria and 14 other African countries; Dangote Cement’s current total production capacity in Nigeria from its three existing cement plants namely Obajana (10.25MMTPA), Ibese (6.0MMTPA) and Gboko (4.0MMTPA) is 20.25MMTPA.
The Obajana Cement Plant (OCP) located in Kogi State is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25MMTPA.
A fourth line which add 3.0MMTPA to the existing capacity will bring the total capacity of Obajana to 13.25MMTPA by 2015.
Dangote Cement is also the biggest quoted company in West Africa and the only Nigerian company on the Forbes Global 2000 Companies.