Dangote Cement, 22 Others Generate N8.11tn Amidst Economic Storm

Dangote Cement Plc and 22 other companies, despite macroeconomic challenges, generated revenues of about N8.11 trillion in the first half of the year ending June 2024, up about 68% from N4.83 trillion in the same period of 2023. The other 22 companies are active in sectors such as telecommunications, agribusiness, cement manufacturing, power generation, oil and gas, and fast-moving consumer goods (FMCG).
An independent investigation conducted by Journalists found that the companies were able to significantly increase their sales even as double-digit inflation led to higher costs of food and services across the country.
However, operating costs and foreign exchange losses weakened profit generation, posing a threat to financial results and balance sheets for 2024.
Companies operating in Nigeria are struggling with dwindling purchasing power due to rampant inflation across Africa, weak naira, insecurity, and delayed delivery of goods and services across the country. During the period, Dangote Cement was the top earner, followed by MTN Nigeria Communications Ltd and BUA Foods Ltd.

Breaking it down, Dangote Cement reported revenue of about N1.76 trillion in the first half of 2024, up about 85% from N950.83 billion in the first half of 2023, while MTN Nigeria reported N100 million in the first half of 2023. Revenue was N1.54 trillion, up 33% from N1.16 trillion in the first half of 2023.
Dangote Cement CEO Arvind Pathak said in a statement on the results: “We effectively navigated macroeconomic headwinds to deliver positive results in the first half of the year. Group volumes were up 3.8 percent, with our Nigeria operations achieving double-digit volume growth of 10.9 percent. This growth was driven by improved efficiency across our operations and supported by increased market activity levels compared to the election year and cash crunch in 2023.
“Despite the challenges of elevated inflation, high borrowing cost, and a further weakening of the currency in the first six months of the year, our business demonstrated strong resilience. This was due to our rigorous focus on cost minimization and our diversified business model.
“Group revenue and EBITDA rose 85.1 percent and 50.3 percent to N1,760.1 billion and N666.2 billion, respectively. Our PAT reached N1,89.9 billion, marking a 6.3 percent increase. I am pleased with the performance of our business, as key financial indicators are showing positive trends.
“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.”

As head of MTN Nigeria, the telecommunications giant, Carl Toriola, explained that the company’s performance in the first half of 2024 highlighted its performance despite macroeconomic headwinds and currency effects.
“The macroeconomic conditions in Nigeria have been challenging during the period. The country has been dealing with rising inflation and the continued depreciation of the naira against the dollar and other currencies. The inflation rate reached 34.2 percent in the month of June, with an average rate of 32.8 percent in the first half of the year, while the naira closed June 2024 at N1,505/Dollar (December 2023: N907/$) at the Nigerian Autonomous Foreign Exchange Market (NAFEM). However, we are encouraged by the improving liquidity in the foreign exchange in the period which enabled us to reduce our exposure to foreign currency-denominated obligations,” he said.
BUA Foods reported sales of N672.39 billion for the first half of 2024, a 109.5 percent growth compared to N320.93 billion in the first half of 2023.

The company attributed the increase in sales to an 88 percent increase in sugar sales year-on-year to N369.7 billion (H1 2023: N196.5 billion) and a 164 percent increase in flour sales to N227.9 billion (H1 2023: N227.9 billion). 86.05 billion Naira, while pasta sales fell 95% to 74.03 billion Naira (1H23: 37.9 billion Naira).
BUA Foods Managing Director, Ayodele Abioye, said: “The first half of the year has been one of significant resilience and achievements for our company. We attained a robust financial performance, with total revenue increasing by 110per cent to N672.3 billion compared to the same period last year. Our gross profit stands at N218.4 billion, reflecting a growth of 64per cent. This solid performance is a testament to the efficacy of our strategic initiatives, operational efficiency, and unwavering dedication of our board, management, and other members of staff.
“During this period, we have made significant strides in executing our strategic plans, successfully launching new products, specifically, macaroni, premium pasta, and semolina to meet the yearnings of our customers Our diversified portfolio and expansion into new markets impacted revenue growth while strengthening our partnership with key stakeholders. We also maintained a strong focus on cost optimization, resulting in sustained margins and profitability.”

He further added, “Looking ahead, we remain confident in our ability to navigate the challenges and opportunities in the market. We will continue to leverage our strong and orchestrated supply chain system to deliver a great financial performance in line with our strategic vision for sustainable growth and value creation for all stakeholders.”
Capital market analysts noted that these companies have remained resilient over the years despite significant economic challenges such as high inflation, weak exchange rates, and persistent security concerns.
Tajudeen Olayinka, CEO of Wyoming Capital and Partners, said, “The performance of H1 2024 results is mixed while some have very good results, others were faced with CBN naira revaluation policy that impacted their bottom line. Nigerian companies are resilient and we expect some to outperformance 2023FY, while some will declare loss over macro challenges.”
David Adonri, analyst and managing director at HiCap Securities Limited, said, “Nigeria’s economy is witnessing challenges including hike in inflation, security, removal of subsidy, unstable foreign exchange, among other factors that have continued to have mixed performance on revenue generation. However, we should commend these firms for generating a significant increase in revenue, and let’s hope they will outperform 2023FY results and declare a dividend.”
Additionally, Cardinal Stone analysts said in the report, “In 2024, the Nigerian cement industry is expected to benefit from renewed government focus on infrastructure development and construction projects, which could stimulate demand for cement products.

They added, “With increased budget allocations to critical sectors and ambitious infrastructure initiatives (N1.32 trillion to infrastructure, which represents five percent of the total FG 2024 budget), the construction industry is likely to experience a resurgence. Cement manufacturers, in response, are beginning to recalibrate their production strategies in the form of capacity expansion and improved efficiency to meet the anticipated rise in demand. While challenges may persist, the outlook for Nigeria’s cement industry in 2024 is one of cautious optimism, with potential growth opportunities emerging amidst the recovery phase.”