Dangote Cement Targets N38b Profit In Q1

Dangote Cement Plc is targeting a Profit Before Tax (PAT) of N38.5 billion for the first quarter ending March 31, 2012.
In a filing at the Nigerian Stock Exchange (NSE), the company also sees a turnover of N69.16 billion during the first quarter.

According to the third quarter results ended September 30, 2011, the company posted turnover of N173 billion, showing an increase of 18.6 per cent above the N146.6 billion in the corresponding period of 2010. Profit after tax rose by 22 per cent to hit N92.8 billion.

Commenting on the results, analysts at Afrivest West Africa Limited, a leading investment bank, said the performance? of the Cement company was broadly in line with? their? expectations.

“Profitability margins improved over the period as profit before tax and profit after tax? margins stood at 54 per cent and 53.4 per cent from 52.5 per cent and 51.4 per cent? in 2010. On a quarterly basis, the improvement sees margins appear more pronounced, with quarterly margins of 57.8 per cent and 57.5 per cent for the period from 52.7 per cent and 51.9 per cent for pre and post-tax margins respectively,” they said.

However, the company’s? equity ended the year with a market capitalisation of N1.716 trillion notwithstanding the downturn that saw the Nigerian Stock Exchange (NSE) All-Share Index close 2011 with a decline of over 16 per cent,

The equity was trailed by Nigerian Breweries Plc which closed the year with capitalisation of N714 billion.

Dangote Cement, a member of the Pan African Conglomerate, the Dangote Group, has for some time ruled the market as the most capitalised equity despite the downturn that has characterised trading in the stock market.