Dangote Cement reported sluggish profit growth as profit after tax inched slightly higher by 0.6% by N279.1 billion in the first nine months ended September 30, 2024.

In the company’s unaudited financial statements obtained by Investors King, group revenue rose 69.1% to N2.560 trillion while EBITDA appreciated 37.1% to N908.7 billion.

Earnings per share appreciated by 2.9% to N16.55 and net debt stood at N1.050 trillion. See other details below.

Dangote Cement Financial highlights

• Group revenue up 69.1% to ₦2,560.6B
• Group EBITDA up 37.1% to ₦908.7B; 35.5% margin
• Nigeria EBITDA up 37.3% to ₦697.4B; 45.5% margin
• Pan-Africa EBITDA up 45.4% to ₦247.1B; 22.6% margin
• Profit after tax up 0.6% at ₦279.1B
• Earnings per share up 2.9% at ₦16.55
• Net debt of ₦1,050.5B; net gearing of 48.6%

Operating highlights

• Group volumes up by 1.9% to 20.7Mt
• Rebound in Nigeria volumes, up 9.5% to 13.2Mt
• Exported 22 ships of clinker from Nigeria to Ghana and Cameroon
• Nigeria cement and clinker exports up 75.5% at 873Kt ESG highlights
• Commissioned 11 of the 17 Alternative Fuel Projects across the Group
• Arrival of 1500 full CNG trucks to support cost saving initiatives

Arvind Pathak, Chief Executive Officer, said: “Our financial results for the nine months period demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9% year-on-year to 20.7Mt, largely due to a significant rebound in Nigeria. This growth was supported by promotional activities and enhanced route-to-market solutions, which helped mitigate the impact of adverse
weather conditions.

Despite the challenges of elevated inflation, high borrowing costs, and further currency depreciation that characterized the nine-month period, our business showed remarkable resilience. This was achieved through a strong focus on cost minimisation and our diversified business model.

Group revenue surged by 69.1% to ₦2,560.6 billion, while EBITDA increased by 37.1% to ₦908.7 billion. As such, PAT closed at ₦279.1 billion, a modest 0.6% increase on the back of FX loss. Both our revenue and EBITDA for the nine-month period have already exceeded our full-year 2023 performance, with additional growth potential anticipated in the last quarter. I am pleased with the Company’s overall performance, as key financial indicators are
showing positive trends.

Leveraging our robust export-to-import strategy, Dangote Cement successfully completed 22 shipments of clinker from Nigeria to Ghana and Cameroon. This effort resulted in a 75.5% increase in our Nigerian exports, highlighting our commitment to promoting Africa cement self-sufficiency.

Looking ahead, our key focus remains on enhancing efficiency and delivering greater value. We will continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future.”

Chemical and Allied Products Plc, one of the leading paints and coatings companies in Nigeria, grew revenue by 47% in the third quarter ended September 2024 to N8 billion.

The company disclosed in its unaudited financial statement obtained by Investors King.

Gross profit jumped 58% to N3.5 billion while gross margin did 43% in the period under review. Operating profit rose by a whopping 185% to N1.2 billion. Check other financial details below.

Key Financial Details for Q3 2024

• N8.0 billion revenue, 47% higher than Q3 2023.
• Gross profit 58% higher at N3.5 billion. Gross margin of 43%, 3 percentage points higher.
• Operating profit 185% higher at N1.2 billion. Operating margin of 15%, 7 percentage points higher.
• Profit before tax of N1.3 billion, 204% higher than N414 million recorded in Q3 2023.

Key Financial Details for 9M 2024

• N23.7 billion revenue, 55% higher than 9M 2023.
• Gross profit 55% higher at N9.0 billion.
• Operating profit 71% higher at N2.8 billion. Operating margin of 12%, 1 percentage point higher.
• Profit before tax of N3.9 billion, up 69% from N2.3 billion in 9M 2023.

Commenting on the results, Managing Director, Bolarin Okunowo, stated: “We are pleased to report a strong set of results for Q3 2024, demonstrating the resilience of our business model and our ability to navigate a challenging operating environment. We recorded growth in revenue, operating profit, and profit before tax of 47%, 185%, and 204% respectively.

“This was achieved by executing our strategic growth objectives and prioritizing operational efficiency. Looking ahead to the last quarter of the year, we remain focused on delivering profitable growth and enhancing our customer experience.”

In support of the renewed hope agenda of President Bola Ahmed Tinubu, Dangote Cement Plc has perfected plans to convert all fuel-powered trucks to Compressed Natural Gas (CNG) trucks by mid-2026

The Group Managing Director, Arvind Pathak, who revealed the company’s plans to reduce carbon emissions, cut costs and protect the ozone layer said Dangote Cement has earmarked $280 million to spend on CNG infrastructure.

Speaking on the initiative, the President of Dangote Group, Aliko Dangote said “In this pursuit of transition to clean energy, we are optimistic of a remarkable accomplishment by President Bola Ahmed Tinubu, as he has taken the lead in the nation’s drive towards energy efficiency. This presupposes private sector intervention to support this noble idea initiated by the President.”

“We are now using CNG vehicles, especially with the new policy of the Federal Government, launched under the Renewed Hope Agenda by His Excellency, President Bola Ahmed Tinubu. We are committed to a cleaner and greener future,” he added.

Speaking about measures put in place to achieve the complete transition to CNG, Pathak reiterated that Dangote has completed the construction of a CNG power station in Obajana, with another one under construction in Ibese.

To achieve the complete transition to CNG infrastructure, Pathak revealed that Dangote projected 3100 CNG-powered trucks by the end of 2024. However, 1500 has been received with 1600 in expectant.

“By mid-2026, Dangote Cement aims to operate a fleet predominantly powered by CNG. To facilitate this transformation, we are investing in expanding our CNG fuelling infrastructure, ensuring that our growing fleet has reliable access to CNG as our fuel.”