Dangote Cement has recorded a revenue of N817.4 billion while the profit after tax inched up by 2.9 per cent to N112.7 billion.
Earnings per share closed the quarter at N6.68 representing an increase of 3.7 percent.
The cement manufacturers’ unaudited results for the three months that ended on March 30, 2024, the Nigerian operations volume rose significantly and positively affected the rise in the Group’s overall volume to 7.0Mt.
The revenue from the Nigerian operations increased by 61.6% to N452.9B in Q1 2024, while EBITDA rose by 41.8% to N224.9B, excluding central costs and eliminations (Q1 2023: N158.6B, margin of 56.6%).
The company stated that the Nigerian operations recorded an EBITDA margin of 49.7%, saying the lower EBITDA margin was impacted by the significant devaluation of the Naira compared to same period last year, this resulted in a significant increase in both our variable and fixed costs.
As part of its sustainability programme, Dangote Cement commissioned 10 of the 17 Alternative Fuel Projects across the Group.
Speaking on the results, Chief Executive Officer of Dangote Cement, Arvind Pathak, said: “Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1 per cent to 4.6Mt in the quarter.
Dangote Cement declares N455.6bn profit, N30 dividend per share
“Similarly, our pan-Africa operations continued an upward trajectory, with volumes up 3.1 per cent 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 N817.4 billion, while Group EBITDA rose 66.6 per cent to N309.5 billion. Profit After Tax was up 2.9 per cent at N112.7 billion.
“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 87.2 per 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.”
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 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.
In addition, 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).
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