Dangote Cement’s Profit Up 13% to N166.4bn in Q1 2024
Kayode Tokede
Dangote Cement Plc, yesterday announced its unaudited first quarter (Q1) ended March 31, 2024 with N166.4 billion profit before tax, an increase of 13.3 per cent from N146.8 billion profit before tax declared in (Q1) first quarter of 2023.
The Cement maker on the Nigerian Exchange Limited (NGX) announced N112.67 billion profit after tax in Q1 2024, representing an increase of nearly three per cent when compared to N109.5 billion in Q1 2023.
Significant increase in revenue influenced Africa’s largest cement producer profit generation in Q1 2024.
In the Q1 2024 under review, Dangote Cement announced N817.35 billion revenue, a significant increase of 101 per cent from N406.72 billion in 2023, owing to strong volume growth in addition to price increases in line with inflationary realities.
Both its Nigeria and pan-Africa operations recorded volume growth in the period.
The company explained that sales volumes from its core Nigerian operations rose 26.1per cent to 4.6Mt in Q1 2024 from 3.6Mt in Q1 2023.
“The strong rebound in Nigeria volumes is due to an uptick in economic activities in comparison to last year when the combined effect of election uncertainties and currency crunch caused a slowdown of infrastructural projects and impacted the retail end of the market.
“As a result, Nigeria revenue rose 61.6per cent to N452.9billon in Q1 2024 from N280.3 billion in Q1 2023.Meanwhile, pan-African volumes continued an upward trajectory in the first quarter, increasing by 3.1 per cent to 2.7Mt from 2.6Mt in Q1 2023, on the back of improved sales, especially coming from Congo, Zambia and Ghana.
“Consequently, pan-Africa revenue was up by 201.6per cent to N381.3billion, owing to robust demand from the region in addition to price increases.,” the company added in a statement obtained by THISDAY.
Operating profit of N255.3 billion in Q1 2024, representing 62.7per cent increase from N156.9 billion for Q1 2023, to bring its margin to 31.2per cent in Q1 2024 from 38.6per cent in Q1 2023.
The Chief Executive Officer, Dangote Cement, Mr. Arvind Pathak in a statement said, “Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1per cent to 4.6Mt in the quarter.
Similarly, our pan-Africa operations continued an upward trajectory, with volumes up 3.1% to 2.7Mt, buoyed by increased sales in Zambia and Congo.
Despite elevated cost pressures, increased borrowing costs, and a further currency weakening, our first-quarter results reflect our commitment to navigating challenges effectively. Group revenue more than doubled to N817.4billion, while Group EBITDA rose 66.6per cent to N309.5billion.
“PAT was up 2.9per cent at N112.7billion. These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders.
During the quarter, we intensified our emphasis on exports, dispatching seven ships from Nigeria to Ghana and Cameroon. As a result, our Nigerian exports surged by 87.2per cent, reflecting our commitment to expanding our presence in regional markets and capitalising on our export-to-import strategy.
“We continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future”.
