• Tuesday, May 28, 2024
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Dangote Cement’s three-month revenue doubles to N817bn

Dangote Cement’s three-month revenue doubles to N817bn

The revenue of Dangote Cement Plc, a Nigerian cement manufacturer, rose by 101 percent within a year, according to its latest unaudited financial statement.

The company reported a revenue of N817.4 billion in the first three months of 2024 from N406.7 billion in the same period of last year. It also recorded an increase of 26.1 percent in domestic sales volumes to 4.6Mt from 3.6Mt.

“Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1 percent to 4.6Mt in the quarter. Similarly, our pan-Africa operations continued an upward trajectory, with volumes up 3.1 percent 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,” Arvind Pathak, chief executive officer of Dangote Cement, said.

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“Group revenue more than doubled to N817.4 billion, while group EBITDA rose 66.6 percent to N309.5 billion. After-tax profit was up 2.9 percent at N112.7 billion. These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders,” he added.

Pathak said during the quarter, it intensified its emphasis on exports, dispatching seven ships from Nigeria to Ghana and Cameroon.

“As a result, our Nigerian exports surged by 87.2 percent, 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.”

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According to a statement, Dangote Cement is Africa’s leading cement producer with 52.0Mta capacity across Africa.

“A fully integrated quarry-to-customer producer, Dangote Cement has a production capacity of 35.25Mta in Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 16.25Mta of capacity across five lines; Ibese plant in Ogun state has four cement lines with a combined installed capacity of 12Mta; Gboko plant in Benue state has 4Mta; and Okpella plant in Edo state has 3Mta,” the statement said.

It added that through recent investments, Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.

“The company has operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (2.0Mta clinker grinding and import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).”