Dangote Cement Plc has announced a profit after tax (PAT) of N159.5 billion for the year ended December 31, 2014.
The result which showed a decline of about 20 per cent compared with N201.2 billion posted I 2013, was affected by erratic fuel supply and prolonged rainy season.
“Despite the challenging conditions of the erratic fuel supply and prolonged rainy season that affected revenues and profitability in Nigeria, the company is confident about the future,” the company’s director who oversaw operations of the cement unit until recently, Mr. Devakumar Edwin, was quoted to have said in a Bloomberg report.
Uaccording to the result released by the company on Thursday, Dangote Cement’s 2014 wrevenue was up at N392 billion up from N386 billion in 2013, but gross profit stood atN248.6 billion compared to N255.7 billion in 2013, an indication of cost challenges.
Administrative expenses rose from N25.9 billion to N274 billion, while sales/distribution expenses increased from 35.6 billion to N37.4 billion. Finance cost soared by 140 per cent from N13.7 billion to N32.9 billion. Profit before tax stood at N184.7 billion, compared with N191 billion.
The company paid an income tax of N25.2 billion in 2014, as against a tax credit of N10.5 billion 2013. The N25 billion tax charge resulted from the expirations of the tax exemptions on some lines of the company’s business.
Consequently, the company ended the year a PAT of N159.5 billion, compared with N201 billion in 2013.
Based on the performance, the directors have recommended a dividend of N6.00 per share, which translates to a yield of 3.9 per cent and pay out ratio of 63.5 per cent.
