Africa’s richest man Aliko Dangote’s Dangote Cement posts $1.1-billion revenue in H1 2024

Omokolade Ajayi -

Key Point

  • Dangote Cement Plc’s H1 2024 revenue surged 85.1% to $1.1 billion, driven by operational efficiency and market activity.
  • Foreign exchange losses and high interest expenses constrained profit growth to 6.3%, reaching $118 million.
  • Nigerian operations saw a 10.9% volume increase, while pan-African volumes grew 1.2%, with regional revenue rising 139.9%.

Dangote Cement Plc, the multinational cement giant majority owned by Africa’s richest man Aliko Dangote, continues to expand its market share in the African cement market, reporting a significant revenue surge to $1.1 billion in the first half of 2024.

The company’s recently published financial results show an 85.1-percent increase in revenue, rising from N942.7 billion ($586.4 million) in the first half of 2023 to N1.76 trillion ($1.1 billion) in the first half of 2024. This growth is attributed to improved efficiency across operations and increased market activity levels.

Foreign exchange losses hit profit

Despite the impressive revenue growth, operating expenses and foreign exchange losses affected the company’s profit margins. Net foreign exchange losses amounted to N201.3 billion ($125 million), and interest expenses totaled N131.22 billion ($81.7 million). Consequently, the company’s profit increased marginally by 6.3 percent, from N178.6 billion ($111 million) in the first half of 2023 to N189.9 billion ($118 million) in the first half of 2024.

“We effectively navigated macroeconomic headwinds to deliver positive results in the first half of the year,” said Arvind Pathak, chief executive officer. “Group volumes were up 3.8 percent, with our Nigeria operations achieving double-digit volume growth of 10.9 percent.”

Pan-African operations maintain growth

The Nigerian business saw volume growth rebound to 9 million tonnes, a 10.9-percent increase from the 8.1 million tonnes sold in the first half of 2023. Revenue from Nigerian operations increased by 60.3 percent to N991.4 billion ($616.7 million). Pan-African operations also maintained growth, with volumes slightly up 1.2 percent to 5.5 million tonnes, and total pan-African revenue increasing by 139.9 percent to N807.1 billion ($502.1 million).

Pathak highlighted the group’s robust strategy, which includes leveraging a robust export-to-import strategy and increasing capital investments. “By leveraging our robust export-to-import strategy, Dangote Cement completed 14 shipments of clinker from Nigeria to Ghana and Cameroon. This effort resulted in a 55.2 percent surge in our Nigerian exports, underscoring our commitment to fostering African self-sufficiency,” he said.

Dangote Cement leads Sub-Saharan production

Dangote Cement, with an annual production capacity of 52 million tonnes across 10 countries, remains the largest cement producer in Sub-Saharan Africa. The company, 86-percent owned by Aliko Dangote, has transformed Nigeria from a cement importer to a regional exporter, supplying countries like Cameroon, Congo, and Ghana.