DANGCEM H1’2021 double-digit growth in Revenue by 44.81% y/y to close at
N690.55bn could largely be attributed to higher sales volumes during the period, arising from the surge in volumes sold to 15.3mmt and higher Revenue per tonne by 14.5% y/y to N45,133.66. The significant growth reflects sustained demand in construction activities post-Covid Pandemic, the new 3mmt Obajana line as well as the resumption of the clinker exports from the Apapa and Onne terminals in Q2’21.
Higher Net Finance Cost owing to Rising Debt
The H1’21 Net Finance Cost increased by 97.05% y/y to
N20.94bn on rising debt burden as DANGCEM successfully raised a N50bn bond in 3 tranches with a maturity profile of 2024-2028, under the N300bn bond purchase programme alongside an increase in bank loans (from N501.7bn in FY-2020 to N582.2bn in H1-2021) and FX loss of N10.6bn in Q1-2021.