Dangote Cement Plc yesterday released its results for the 2019 financial year.
■Revenue and profit dropped slightly. Revenue dipped by 1.1% from N901 billion in 2018 to N891 billion in 2019.
■Profit fell sharply
-Operating profit fell by 13% from N338 billion in 2018 to N299 billion in 2019. Operating profit is the figure you get when you subtract administrative, selling and distribution expenses from gross profit.
The closed borders also is affecting distribution
-Profit after tax declined sharply from N390 billion in 2018 to N200 billion in 2019, down 48.7% year on year. The company had N49.9 billion as tax, unlike in 2018 when it got N138 billion as tax credit.
■Volume growth was poor
The volume of cement that the company produced and sold grew marginally. Cement volumes grew by 4.8% to 22,809 tonnes. Cement sold rose slightly by 0.1% to 23, 566 tonnes.
■The bright side
Despite the decline, the company declared a final dividend of N16. This however is higher than the earnings per share of N11 it made in 2019. An indication it dipped into its retained earnings, to maintain the same payout as last year.
Dangcem shares are currently trading flat, despite the poor result. Meanwhile, to invest in the stock market you should have the long term in view.