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  #1401 (permalink)  
Old 2nd March 2016, 09:45 AM
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Default Re: Dangote cement

Quote:
Originally Posted by eniyanman View Post
What is the point of increasing capacity by 35% but sales volumes only increase by 3%. One answer could be to get capital allowance. In a previous report, Dangote cement has been moving production from plants (whose 'pioneer status' has presumably ended) to new units of the same plants (presumably to get tax relief). This is investment 'musical chairs'. It is a total waste of resources (financial and environmental). And this is done by a company which has made over 1 trillion naira in profit in the last 6 years but paid less than 50 billion in tax over the same period. Put it another way, MTN Nigeria's N50bn 'goodwill payment' towards its fines is more than all the taxes Dangote Cement has paid in 6 years! Think about it, it Dangote cement has paid the effective tax rate of 15% over the last 3 years, the Nigerian Govt would have received N75bn. Imagine how many health centre, schools etc this would have been funded.

The pioneer status tax relief has to be capped. One clear sign from Dangote Cement results is that PBT has only grown 2% (a poor result, in my view). Sales volume in Nigeria was low, so calls to question the continued investment in new output. At the end of the day, this is a company whose competitive advantage seems to be access to forex and tax subsidies.

I am eagerly awaiting Tiger Brands (formely Dangote Flour) results. Will Dangote claim pioneer status on on this business AGAIN

Friends, welcome to the Federal Republic of Dangote!!
On the bolded Dangote Cement also lost about N25B as non cash exchange difference on dealing with their net investments in foreign operations...clearly the effect of devaluation...

Imagine when we would have devalued officially by 30% this year and the effects it will have on Dangote by year end.....

#CurrencyRisk
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  #1402 (permalink)  
Old 2nd March 2016, 10:00 AM
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Default Re: Dangote cement

Quote:
Originally Posted by overload View Post
On the bolded Dangote Cement also lost about N25B as non cash exchange difference on dealing with their net investments in foreign operations...clearly the effect of devaluation...

Imagine when we would have devalued officially by 30% this year and the effects it will have on Dangote by year end.....

#CurrencyRisk
This is funny, despite the forex subsidy, they still suffered currency loss. So CBN is effectively covering currency risk for operators in other countries but not for businesses operating in Nigeria. Did the foreign countries it invested in not have a central bank it could get forex subsidy from? Obviously, Lafarge also obtained forex subsidy from France and Switzerland for its Nigeria operations .

Anyway, let the 'musical chairs' continue.

#Malinvestment
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  #1403 (permalink)  
Old 2nd March 2016, 05:28 PM
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Default Re: Dangote cement

Quote:
Originally Posted by eniyanman View Post
What is the point of increasing capacity by 35% but sales volumes only increase by 3%. One answer could be to get capital allowance. In a previous report, Dangote cement has been moving production from plants (whose 'pioneer status' has presumably ended) to new units of the same plants (presumably to get tax relief). This is investment 'musical chairs'. It is a total waste of resources (financial and environmental). And this is done by a company which has made over 1 trillion naira in profit in the last 6 years but paid less than 50 billion in tax over the same period. Put it another way, MTN Nigeria's N50bn 'goodwill payment' towards its fines is more than all the taxes Dangote Cement has paid in 6 years! Think about it, it Dangote cement has paid the effective tax rate of 15% over the last 3 years, the Nigerian Govt would have received N75bn. Imagine how many health centre, schools etc this would have been funded.

The pioneer status tax relief has to be capped. One clear sign from Dangote Cement results is that PBT has only grown 2% (a poor result, in my view). Sales volume in Nigeria was low, so calls to question the continued investment in new output. At the end of the day, this is a company whose competitive advantage seems to be access to forex and tax subsidies.

I am eagerly awaiting Tiger Brands (formely Dangote Flour) results. Will Dangote claim pioneer status on on this business AGAIN

Friends, welcome to the Federal Republic of Dangote!!
This should give us a lot of concern. I nearly cursed the analysts who called Dangote Cement a buy some years back after being burnt by Dangote Sugar.

Nigeria missed two great tyre industries that would be shining stars today. Michelin and Dunlop due to government foolishness. Companies that could have achieved close to 90% local content by today if not more. Firms that will not need forex to survive but could have generating their own forex in the West African sub region if they were nurtured.
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  #1404 (permalink)  
Old 2nd March 2016, 05:44 PM
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Default Re: Dangote cement

Quote:
Originally Posted by eniyanman View Post
What is the point of increasing capacity by 35% but sales volumes only increase by 3%. One answer could be to get capital allowance. In a previous report, Dangote cement has been moving production from plants (whose 'pioneer status' has presumably ended) to new units of the same plants (presumably to get tax relief). This is investment 'musical chairs'. It is a total waste of resources (financial and environmental). And this is done by a company which has made over 1 trillion naira in profit in the last 6 years but paid less than 50 billion in tax over the same period. Put it another way, MTN Nigeria's N50bn 'goodwill payment' towards its fines is more than all the taxes Dangote Cement has paid in 6 years! Think about it, it Dangote cement has paid the effective tax rate of 15% over the last 3 years, the Nigerian Govt would have received N75bn. Imagine how many health centre, schools etc this would have been funded.

The pioneer status tax relief has to be capped. One clear sign from Dangote Cement results is that PBT has only grown 2% (a poor result, in my view). Sales volume in Nigeria was low, so calls to question the continued investment in new output. At the end of the day, this is a company whose competitive advantage seems to be access to forex and tax subsidies.

I am eagerly awaiting Tiger Brands (formely Dangote Flour) results. Will Dangote claim pioneer status on on this business AGAIN

Friends, welcome to the Federal Republic of Dangote!!
Please, how do I apply for the job of minister of finance (CFO) in this republic
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  #1405 (permalink)  
Old 13th July 2016, 12:31 PM
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Default Re: Dangote cement

Dangote Cement is building cement plants across Africa but will rather cross list his stock outside of Africa. How will African stock markets get developed.

Details at Dialectic Africa Analyst
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  #1406 (permalink)  
Old 28th July 2016, 03:35 PM
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Default Re: Dangote cement

http://nse.com.ng/Financial_NewsDocs..._JULY_2016.pdf
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  #1407 (permalink)  
Old 31st August 2016, 04:12 PM
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Default Re: Dangote cement

http://www.nse.com.ng/Financial_News...UGUST_2016.pdf

Avengers have finally stopped Dangote from using their gas...

Good one for the Coal Miners in Kogi state,...
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  #1408 (permalink)  
Old 31st August 2016, 04:32 PM
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Default Re: Dangote cement

Quote:
Originally Posted by overload View Post
http://www.nse.com.ng/Financial_News...UGUST_2016.pdf

Avengers have finally stopped Dangote from using their gas...

[B]Good one for the Coal Miners in Kogi state,...[B]
One man's food........
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  #1409 (permalink)  
Old 1st September 2016, 08:49 AM
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Default Re: Dangote cement

Quote:
Originally Posted by duduspace View Post
One man's food........
At least they have a plan..
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  #1410 (permalink)  
Old 12th October 2016, 06:25 AM
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Default Re: Dangote cement

Closed at 183 yesterday
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  #1411 (permalink)  
Old 27th October 2016, 11:33 AM
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Default Re: Dangote cement

http://www.nse.com.ng/Financial_News...TOBER_2016.pdf

Nigeria market subsidizing the African markets. The Pan Africa revenue is like 1/3 of Nigeria revenue. While the Nigeria market made over 300B in profit, the PAN Africa market made a loss. Something is definitely not right

Last edited by oluseyi; 27th October 2016 at 11:35 AM. Reason: the last sentence
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  #1412 (permalink)  
Old 27th October 2016, 07:21 PM
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Default Re: Dangote cement

Quote:
Originally Posted by oluseyi View Post
http://www.nse.com.ng/Financial_News...TOBER_2016.pdf

Nigeria market subsidizing the African markets. The Pan Africa revenue is like 1/3 of Nigeria revenue. While the Nigeria market made over 300B in profit, the PAN Africa market made a loss. Something is definitely not right
Perhaps cement is overpriced in Nigeria relative to other African Markets. That will explain loss/profit but not revenue gap viz a viz loss/profit. There is a higher cost of operations in other African markets could then be a better explanation. While costs in Nigeria could be lower as raw materials are perhaps mined for free in Nigeria without any royalties being paid to the states where the materials are sourced. While they are at competitive prices in other African Markets. What do you think or can see from the data ?
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  #1413 (permalink)  
Old 27th October 2016, 11:30 PM
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Default Re: Dangote cement

Quote:
Originally Posted by Babs_O View Post
Perhaps cement is overpriced in Nigeria relative to other African Markets. That will explain loss/profit but not revenue gap viz a viz loss/profit. There is a higher cost of operations in other African markets could then be a better explanation. While costs in Nigeria could be lower as raw materials are perhaps mined for free in Nigeria without any royalties being paid to the states where the materials are sourced. While they are at competitive prices in other African Markets. What do you think or can see from the data ?
The issue in the Dangote Financial Statement has nothing to do with the price of cement in the foreign countries. At the operating profit level, the Group operating profit is appropriately higher than the company operating level. The disparity is in the Financing cost and if you look at the referenced note 9, specifically exchange gain or loss. The company has N180 billion exchange gain to the group's N54 billion exchange gain meaning that the rest of the group outside the company has an exchange loss of N126 billion. It is impossible to explain what caused this from the financial statement but there is reference to hedging that was not accounted suggesting that it may not be a real loss if the exchange risk was hedged. There is also a big translation gain in the statement of comprehensive income for the group which may or may not be related to this.
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  #1414 (permalink)  
Old 28th October 2016, 07:41 AM
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Default Re: Dangote cement

Quote:
Originally Posted by dupeodus View Post
The issue in the Dangote Financial Statement has nothing to do with the price of cement in the foreign countries. At the operating profit level, the Group operating profit is appropriately higher than the company operating level. The disparity is in the Financing cost and if you look at the referenced note 9, specifically exchange gain or loss. The company has N180 billion exchange gain to the group's N54 billion exchange gain meaning that the rest of the group outside the company has an exchange loss of N126 billion. It is impossible to explain what caused this from the financial statement but there is reference to hedging that was not accounted suggesting that it may not be a real loss if the exchange risk was hedged. There is also a big translation gain in the statement of comprehensive income for the group which may or may not be related to this.
How do they pay for raw materials in Nigeria and Other African Countries, especially those mined my em.
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  #1415 (permalink)  
Old 6th March 2017, 06:31 PM
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Default Re: Dangote cement

Are investors buying Dangote Cement's story?

Details available at:

Dialectic Africa Analyst
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  #1416 (permalink)  
Old 20th March 2017, 08:02 AM
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Default Re: Dangote cement

https://www.bloomberg.com/news/artic...es-in-ethiopia

Dangote Cement Faces Disruptions in Ethiopia Over Jobs Plan

Ethiopian regional officials are demanding foreign cement producers including Dangote Cement Plc hand control of some parts of their businesses to groups of unemployed youths.

The Nigerian company, controlled by Africa’s richest man, Aliko Dangote, and others such as Saudi billionaire Mohammed al-Amoudi’s Derba MIDROC Cement Plc, should allow the youth to run their pumice mines, according to a draft contract drawn up by Oromia state’s East Shewa Zone administration
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