Dangote Cement PLC, Africa’s leading cement producer, has reported a 56% year-on-year increase in EBITDA to over ₦1 trillion for the year that ended on December 31, 2024.
The group’s profit after tax rose by 10.5% to ₦503.2 billion, according to the audited financial report of the company obtained by Investors King.
Financial Performance Overview
Dangote Cement’s Group revenue surged by 62.2% to ₦3,580.6 billion, driven by a combination of higher volumes and strategic price adjustments in response to inflationary pressures.
The Group’s EBITDA also increased by 56.0% to ₦1,382.0 billion, maintaining a margin of 38.6%.
In Nigeria, EBITDA grew by 67.2% to ₦1,087.3 billion with a margin of 49.6% while the Pan-African operations reported a 30.9% increase in EBITDA to ₦345.3 billion.
Earnings per share (EPS) rose by 12.3% to ₦29.7.
Arvind Pathak, Chief Executive Officer of Dangote Cement, attributed the strong performance to operational efficiency and a resilient business model.
“We wrapped up 2024 with strong momentum, driven by our focus on operational efficiency and excellence. Our Group volumes grew by 1.6% year-on-year, reaching 27.7Mt, driven by a strong recovery in Nigeria, where we improved efficiency and boosted sales growth by 7.9%,” Pathak said.
Operational Highlights: Strong Nigerian Recovery and Export Growth
The Group’s total volumes increased by 1.6% to 27.7 million tonnes, with Nigerian volumes rebounding by 7.9% to 17.7 million tonnes. A key driver of this growth was the launch of the Distributor Management System (DMS), enabling customers to manage sales transactions and track deliveries independently.
According to Pathak, over 80% of the company’s customers are actively using the platform, with plans to raise adoption to 90%.
Export operations also saw a substantial boost, with Nigeria’s cement and clinker exports rising by 69.1% to 1.2 million tonnes.
The company exported 31 ships of clinker from Nigeria to Ghana and Cameroon, leveraging its export-to-import strategy to reinforce Africa’s self-sufficiency in cement production.
Pathak emphasized the importance of the export strategy, stating, “By leveraging our strong export-to-import strategy, Dangote Cement achieved a record 31 clinker shipments from Nigeria to Ghana and Cameroon, driving a 69.1% increase in Nigerian exports and strengthening our commitment to Africa’s cement self-sufficiency.”
ESG Commitments and Sustainability Gains
Dangote Cement’s Environmental, Social, and Governance (ESG) initiatives also recorded significant progress. The Carbon Disclosure Project (CDP) upgraded the company’s rating to B for both climate and water, recognizing its sustainability efforts.
The company commissioned 11 out of 17 Alternative Fuel Projects, boosting its Thermal Substitution Rate (TSR) to 10% and reducing reliance on conventional energy sources.
The acquisition of 1,500 compressed natural gas (CNG) trucks was a key part of its cost-saving initiatives, aimed at optimizing logistics and reducing carbon emissions.
Also, the company’s investment in alternative energy sources highlights its commitment to sustainability and environmental responsibility.
Strategic Outlook: Expansion and Market Positioning
Looking forward, Dangote Cement plans to further strengthen its market position with the commissioning of its 3 million tonnes per annum (Mta) grinding plant in Côte d’Ivoire in 2025. This expansion is aimed at capturing a larger share of Africa’s high-growth cement market.
Pathak reaffirmed the company’s strategic priorities, stating, “Looking ahead, we remain focused on strengthening our market position, enhancing productivity, and driving economic growth across our operating regions.”
The company’s strategic focus on export markets, efficiency, and sustainability positions it strongly to navigate potential headwinds from inflationary pressures and exchange rate volatility in 2025.
Investment Perspective: A Positive Outlook for Shareholders
With a proposed dividend of ₦30.00 per share and a strong earnings per share (EPS) of ₦29.7, Dangote Cement offers an attractive proposition for investors seeking stable returns amidst market uncertainties.
The company’s ability to sustain profit growth, coupled with its disciplined capital management and expansion plans, underscores its potential to continue delivering value to shareholders.
Analysts view the company’s performance as a testament to its resilient business model and strategic foresight. The combination of strong EBITDA growth, effective cost management, and robust ESG initiatives indicates a balanced approach to growth and sustainability.
