Dangote Cement Doubles Revenue to $659.3 Million in Q1 2024

Dangote Cement Plc, mainly controlled by Africa’s richest man Aliko Dangote, doubled revenue in Q1 2024 to N817.4 billion ($659.3 million). The strong result was fueled by higher cement prices and increasing sales volume.

Group income from cement, clinker, and other products increased by 100 percent year on year, to N817.35 billion ($659.3 million) from N406.7 billion ($328.1 million) in Q1 2023. Higher cement prices fueled the surge.

Production and bagging capacity grew marginally to 52 million tonnes per year, while production volume and sales volume for the period increased to 7.071 million tonnes and 7.042 million tonnes, respectively, up from 6.34 million tonnes and 6.27 million tonnes in the previous quarter. In addition, the group exported seven clinker shipments from Nigeria to Ghana and Cameroon.

With an annual production capacity of 52 million tons across ten countries, Dangote Cement remains Sub-Saharan Africa’s largest cement producer. The top cement firm, 86% controlled by billionaire Aliko Dangote, is a fully integrated quarry-to-customer manufacturer with a 35.25 million tonne annual capacity in Nigeria.

In recent years, the top cement firm has changed Nigeria from a cement importer to a regional exporter, supplying countries such as Cameroon, Congo, Ghana, and others, thereby maintaining its status as Africa’s largest cement producer. In Q1 2024, its profitability improved, with operating profit jumping 63 percent year on year to N255.3 billion ($205.7 million).

Despite excellent growth in revenue and operating profit in Q1 2024, higher finance costs, notably interest expenditures and foreign exchange losses, reduced net profit growth to 2.9 percent year on year, reaching N112.67 billion ($91 million).

According to Dangote Cement CEO Arvind Pathak, the company’s Nigerian businesses had a 26.1 percent increase in volumes due to increased economic activity. “Similarly, our pan-Africa operations continued an upward trajectory, buoyed by increased sales in Zambia and Congo.”

Pathak emphasized the company’s export strategy, with Nigerian exports increasing 87.2 percent due to seven clinker shipments to regional markets. “These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders,” he said.

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