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Dangote Cement Plc, Africa’s leading cement manufacturer, led by the continent’s richest man Aliko Dangote, has unveiled its impressive first-quarter performance, spotlighting substantial strides in regional cement supply and revenue expansion.
In its recently published Q1 2024 earnings release, Dangote Cement disclosed an uptick in clinker exports from Nigeria to key West African markets. The leading cement maker dispatched seven ships laden with clinker to bolster construction industries in Ghana and Cameroon, underscoring its pivotal role in addressing regional cement demands.
Aliko Dangote’s cement behemoth empowers Africa through clinker exports
Clinker, an essential ingredient in cement production, has encountered supply chain hurdles amidst escalating demand, reshaping dynamics within the construction sector. By exporting clinker to nations facing limestone scarcity, Dangote Cement facilitates local cement production, thus underpinning infrastructural development across borders.
In the first quarter of 2024, Dangote Cement’s Nigerian operations shipped a total of 178,000 tonnes of clinker to Cameroon and Ghana. However, exports to neighboring Niger experienced a temporary halt, resulting in a reduction to 86,000 tonnes. Nevertheless, Nigerian exports surged by 87.2 percent, reaching 264,000 tonnes.
Dangote Cement retains pole position in Africa
With an annual production capacity of 52 million tonnes spanning ten countries, Dangote Cement retains its position as Africa’s largest cement producer.
Aliko Dangote, Africa’s richest person, continues to draw the bulk of his wealth from his 86-percent stake in the multinational cement giant. The company currently sports a market capitalization of N11 trillion ($8.86 billion) on the Nigerian Exchange (NGX).
Bolstered by its fully integrated quarry-to-customer model and a staggering 35.25 million tonne per annum capacity in Nigeria, the company has spearheaded Nigeria’s transition from a net importer to a regional exporter, supplying markets such as Cameroon, Congo, and Ghana.
Dangote Cement soars on pan-African expansion
Dangote Cement’s relentless pan-African expansion fueled a 201.6-percent surge in pan-African sales, propelling them from N126.4 billion ($102.1 million) in Q1 2023 to N381.27 billion ($308.4 million) in Q1 2024. This, coupled with a 61.6-percent revenue increase from Nigerian operations, catapulted total revenue to N817.35 billion ($661 million).
Despite the meteoric rise in revenue and operating profit in Q1 2024, Dangote Cement encountered headwinds from elevated financing costs, including interest expenses and foreign exchange losses. Consequently, net profit growth moderated to 2.9 percent year-on-year, reaching N112.67 billion ($91 million).
As Dangote Cement continues to spearhead Africa’s cement industry, its strategic regional expansions and unwavering commitment to operational excellence position the conglomerate for sustained growth and continued dominance in the years ahead.
