Dangote Cement Plc, the multinational cement giant, majority owned by Africa’s richest man Aliko Dangote, maintained strong momentum in the first quarter (Q1) of 2024, doubling revenue year-over-year to N817.4 billion ($659.3 million). The robust performance was driven by a combination of higher cement prices and increased sales volume.
Group revenue from cement, clinker, and other products surged 100 percent year-over-year, reaching N817.35 billion ($659.3 million) from N406.7 billion ($328.1 million) in Q1 2023. Higher cement prices drove the increase.
Production and bagging capacity rose slightly to 52 million tonnes per annum, while production volume and sales volume for the period increased to 7.071 million tonnes and 7.042 million tonnes, respectively, compared to 6.34 million tonnes and 6.27 million tonnes in the prior-year quarter. Additionally, the group exported seven clinker shipments from Nigeria to Ghana and Cameroon.
Dangote Cement Q1 profit limited by costs
Dangote Cement, with an annual production capacity of 52 million tonnes across 10 countries, remains the largest cement producer in Sub-Saharan Africa. The leading cement company, 86-percent owned by billionaire Aliko Dangote, is a fully integrated quarry-to-customer producer with a 35.25 million tonne per annum capacity in Nigeria.
In recent years, the leading cement company has transformed Nigeria from a cement importer to a regional exporter, supplying countries like Cameroon, Congo, Ghana, and others, further maintaining its position as Africa’s leading cement producer. In Q1 2024, its profitability improved, with operating profit rising 63 percent YoY to N255.3 billion ($205.7 million).
Despite the strong growth in its revenue and operating profit in Q1 2024, higher finance costs, including interest expenses and foreign exchange losses, limited net profit growth to 2.9 percent YoY, reaching N112.67 billion ($91 million).
Dangote Cement CEO sees strong rebound in Nigeria, Africa
“Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1 percent,” said Dangote Cement CEO Arvind Pathak in an earnings release published today. “Similarly, our pan-Africa operations continued an upward trajectory, buoyed by increased sales in Zambia and Congo.”
Pathak highlighted the company’s export focus, with Nigerian exports surging 87.2 percent due to seven clinker shipments to regional markets. “These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders,” he added.
