Dangote Cement Nigeria Plc has added another superlative to its name as is the most profitable manufacturer in Africa’s largest economy.
Already, with a market capitalization of N4.11 trillion, the cement maker is the most capitalized entity on the NGX exchange. It has clung on to that top spot for close to a decade.
It seems ridiculously mesmerizing that Dangote Cement’s net income of N191.36 billion in June is equivalent to the profit of 18 manufacturers, combined.
Unilever Nigeria posted a profit of N714.80 million; Nestle Nigeria, (N21.13 billion); Flour Mills, (N5.44 billion); Nigerian Breweries, N7.71 billion); Guinness, (N1.83 billion); Dangote Sugar, (N29.77 billion); (N1.45 billion); BUA Cement, (N21.02 billion), and Lafarge Africa, (N28.32 billion).
Undoubtedly, Dangote Cement bedrock on which the country’s manufacturers are built, whatever happens to it affects the economy; It creates jobs and it is focal to the government attaining its backward integration in cement.
It is also the most cost-efficient manufacturer turning each Naira invested in sales into higher profit while at the same time delivering higher returns to shareholders through share appreciation and bumper dividend.
The company has an efficient energy mix, investing in gas and coal to minimize cost and maximise profit.
Notably, it is spending less on input cost to produce each unit of products compared to peer rivals as evidenced in a cost to sales ratio of 57.11 percent as at June 2021.
That compares to BUA Cement, (60.65 percent); Lafarge Africa, (74.30 percent); Nestle (78.81 percent); Dangote Sugar (79.44 percent); Nascon (86.97 percent); Nigerian Breweries, (90.80 percent); Flour Mills, (93.14 percent); Guinness (94.18 percent); Honeywell, (95.05 percent); Unilever Nigeria, (99 percent); Cadbury, 103.03 percent), and International Breweries, 119.73 percent.