Dangote Cement Reports ₦189.9 Billion Profit in H1 2024

Dangote Cement PLC, Africa’s largest cement producer, has announced profit after tax (PAT) of ₦189.9 billion for the first half of 2024.

This represents a notable 6.3% increase from the previous period and reflects the company’s resilience amid ongoing economic challenges.

In its unaudited financial results for the six months ending June 30, 2024, the Group’s revenue surged by 85.1% to ₦1,760.1 billion.

The group’s earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed by 50.3% to ₦666.2 billion, maintaining a solid margin of 37.9%.

The company’s Nigeria operations were particularly strong with EBITDA rising by 29.1% to ₦463.6 billion, driven by a 10.9% increase in domestic volume to 9.0 million tonnes.

Pan-Africa operations also saw significant improvements, with EBITDA more than doubling to ₦220.4 billion.

Despite facing headwinds such as elevated inflation, high borrowing costs, and currency fluctuations, Dangote Cement demonstrated remarkable resilience.

The company’s net debt stood at ₦915.7 billion, with a net gearing ratio of 42.3%, indicating robust financial health.

Dangote Cement’s operational efficiency was evident in its increased market activity compared to the previous year.

The company exported 14 shipments of clinker from Nigeria to Ghana and Cameroon, contributing to a 55.2% increase in cement and clinker exports.

The group’s thermal substitution rate, which measures the use of alternative fuels, improved to 10.5% from 7.8% in the previous year.

This reflects the company’s commitment to sustainability and cleaner energy practices.

Arvind Pathak, Chief Executive Officer of Dangote Cement, expressed satisfaction with the company’s performance.

“We effectively navigated macroeconomic headwinds to deliver positive results in the first half of the year,” Pathak said.

“Despite the challenges of elevated inflation, high borrowing costs, and a weakening currency, our business demonstrated strong resilience. Our focus on cost minimisation and a diversified business model have been key to our success.”

Pathak also highlighted the company’s strategic approach to exports and investment.

“Our robust export-to-import strategy, which included 14 shipments of clinker, underscores our commitment to fostering African self-sufficiency. We are optimistic about the growth prospects in the African region and continue to prioritize innovation, cleaner energy transition, and cost leadership.”

Dangote Cement remains focused on its long-term vision of transforming Africa and building a sustainable future.

The company’s increased capital investments and commitment to cleaner energy are expected to drive further growth and profitability in the coming months.

With a strong performance in the first half of 2024, Dangote Cement is well-positioned to continue its leadership in the African cement industry and contribute to the continent’s economic development.