Africa’s largest cement group, Dangote Cement Plc, doubled its sales in the first quarter as pre-tax profit rose to N166.4 billion within the first three months.
Key extracts of the interim report and accounts of Dangote Cement for the first quarter ended March 31, 2024 showed that group sales rose by 101 per cent to N817.4 billion in first quarter 2024 as against N406.72 billion recorded in first quarter 2023. Gross profit jumped from N243.05 billion to N419.19 billion. Operating profit leapt from N156.87 billion to N255.3 billion. Profit before tax stood at N166.4 billion in first quarter 2024 as against N146.82 billion in first quarter 2023.
After taxes, net profit recorded modest improvement from N109.5 billion to N112.67 billion. The bottom-line was negatively affected by finance costs, which ballooned from N32.51 billion in first quarter 2023 to N123.23 billion in first quarter 2024.
The report showed strong rebound in Nigeria’s volumes , which rose by 26.1 per cent. Group’s earnings before interest, tax, depreciation and amortization (EBITDA) improved by 66.6 per cent to N309.5 billion. Nigeria’s exports jumped by 87.2 per cent. Nigeria’s EBITDA also rose by 41.8 per cent to N224.9 billion with a margin of 49.7 per cent. Pan-Africa’s EBITDA was N99.9 billion, implying a margin of 26.2 per cent.
Operational highlights indicated that group volumes rose by 12.3 per cent to 7.0 metric tonnes. This was driven by strong rebound in Nigeria volumes, which grew by 26.1 per cent to 4.6 metric tonnes. The group dispatched seven ships of clinker from Nigeria to Ghana and Cameroon, while Nigeria cement and clinker exports jumped by 87.2 per cent at 264Kt
Chief Executive Officer, Dangote Cement Plc, Arvind Pathak, said the uptick in Nigerian operations was driven by improved economic activities.
“These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders,” Pathak said.
He said the group would continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving its vision of transforming Africa and building a sustainable future.
Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa. A fully integrated quarry-to-customer producer, it has a production capacity of 35.25Mta in Nigeria. Its Obajana plant in Kogi state is the largest in Africa with 16.25Mta of capacity across five lines. The Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta. The Gboko plant in Benue state has 4Mta while Okpella plant in Edo state has 3Mta.
In addition, the group has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (2.0Mtaclinker grinding and import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).
Credit: thenationonlineng.net
