DANGOTE CEMENT CONCRETE DIDN'T SET IN 2015.

The financial year 2015 posed such a challenge that Dangote Cement PLC did not end it well the way its cement products comes up with concrete. There was loss of grip on all costs and naturally, the bottom line ended thinner.
According to the figures for the year released not too long ago, Dangote Cement ended the year with 24.6% growth in total income from N425813m  to N530495m even as income from non core business dragged with a sluggish 9.48% growth to N3951m.
That was good enough for a tough year but it got watered down considerably by leaps in costs.
First direct cost increased by 41.1% to N201808m from N143058m, followed by 35.1% and 30.5% increase in administration and selling and distribution costs respectively.
Administration expenses ended the year at N32546m from N24084m while selling and distribution cost came to N53500m from N41004m.
On top of this, with finance income rising by only 13.5% to N34819m from N30565m, finance cost leapt by 64.8% to N54347m from N32978m.
Thus Dangote Cement closed the year with N35.5 gain on each N100 income compared to N43.4 in 2014.
SO:
* Obviously, Dangote Cement will have to roll back cost growth soon to check slipping margins.
* Agreed much of the work may be more on subsidiaries because margin drop for core company is a lot slower.

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