Dangote Cement to pay N40.39 bn in corporate tax
…ramps up production capacity to meet local demand
Nigeria’s Dangote Cement Plc is expected to pay a total of N40.39 billion in taxation to the nation’s treasury from its operational result in the first quarter of 2021.
According to the financial result published by the country’s largest cement manufacturer on Friday, April 30, 2021, the amount is due from corporate tax for the period ended March 31, 2021.
The amount of corporate tax due from Dangote Cement in the first three months of this year is higher by 47.3 percent compared with the N27.42 billion paid in the corresponding period of the 2020 financial year.
In addition, the company currently pays over N240 million Value Added Tax (VAT) daily to the government, making DCP one of the biggest private-sector taxpayers in the country.
As part of the company’s corporate social responsibility, in line with the government’s quest to boost infrastructural development in the country, Dangote Cement opted to provide funding for the construction of major roads in Lagos and Kogi States. The roads are the critical Lagos Apapa Port road leading to the old toll gate and the Lokoja-Obajana-Kabba road straddling Kogi and Kwara states.
Further analysis of the financial report showed that the company ramped up production capacity in the Obajana Line 5 and resumed production at the Gboko plant to meet increased demand for its products.
Dangote Cement also increased the total volume of cement sold in the first three months of the year from its Nigerian operations to 4.9Mt compared to the 4.0Mt sold in the first quarter of 2020.
Pan-African operations sold 2.6Mt of cement in the period under review compared to 2.3Mt sold in the corresponding period in 2020.
The cement maker said it’s making efforts to start the Okpella Plant before the end of June to meet the increasing demand for cement in the country and help to moderate prices in the market.
Commenting on the financial result, Dangote Cement GMD/Chief Executive Officer, Michel Puchercos, said that the company started the first quarter of 2021 on a positive note and recorded increases in revenue and profitability.
He stated that the cement company posted a profit after tax of N89.7 billion.
“We took the strategic decision to pause our clinker exports to ensure we meet the rapid volume growth in the Nigerian domestic market. We are improving the output of our existing and new assets and aim to recommence clinker exports in the second quarter.
“Our Pan-Africa operations have reached new heights, with an EBITDA margin of 25.5 percent and volume growth of 12.8 percent reported during the quarter.
“One of our priorities in 2021 is to strengthen our alternative fuel initiative. It focuses on leveraging the circular economy business model, optimizing costs, and reducing exposure of our cost base to foreign currency fluctuations.
As ever, we are committed to keeping our staff and communities safe by being fully compliant with health and safety measures in all our territories of operation.”
Dangote Cement Plc is sub-Saharan Africa’s largest cement producer with an installed capacity of 48.6Mta across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales, and distribution of cement.
Dangote Cement has a long-term credit rating of AAA+ by GCR and Aa2.ng by Moody’s due to its market-leading position, significant operational scale, and strong financial profile evidenced by the company’s robust operating and net profit margins relative to regional and global peers, adequate working capital, satisfactory cash flow, and low leverage.
Dangote Cement is a subsidiary of Dangote Industries Limited, a diversified and fully integrated conglomerate as well as a leading brand across Africa in businesses such as cement, sugar, salt, beverages, and real estate, with new multi-billion dollar projects underway in the oil and gas, petrochemical, fertilizer and agricultural sectors.