Dangote Cement recorded a growth of 139.9% in its half-year financial results that ended on June 30, 2024.
The company which continues to draw huge amounts of foreign exchange into the country through its pan-African operations, increased its revenue to N807.1 billion in the first half of 2024, compared to N336.4 billion in the same period of 2023. It also reported that the Nigerian market grew by 10.9%, increasing from 8 million to 9 million tonnes in the half year ended June 30, 2024.
According to the cement company’s first half of 2024 financial results, the group’s sales volume increased by 3.8% to 13.9 million tonnes. Group revenue increased by 85% to N1.76 trillion, compared to N950 billion in the same period of 2023. This was driven by 60% growth in Nigeria, which increased from N618 billion to N991 billion.
As part of its ongoing efforts to promote a cleaner environment, Dangote Cement commissioned 11 of the Group’s 17 alternative fuel projects and also received 300 fully loaded CNG trucks for its Nigerian operations. The estimated heat replacement rate reached 10.5% in H1 2024 compared to 7.8% in H1 2023.
Dangote Cement CEO Arvind Pathak said, “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.”
He further added “Despite the challenges of elevated inflation, high borrowing costs, 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.”
He said, “Group revenue and EBITDA rose 85.1 percent and 50.3 percent to N1,760.1 billion and N666.2 billion, respectively. Our profit after tax reached N189.9 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 fourteen 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.”
Looking ahead, Pathak also mentioned, “We remain bullish about the growth prospect of the African region, evident in our increased capital investments. We continue to prioritize innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future.”
