Dangote Cement Plc Releases Q1 Report With N112.67 Billion PAT
- Posted on April 26, 2024
- Featured
- By PETER AGADA
Dangote Cement Plc released its first quarter (Q1) report yesterday. The quarter ended March 31, 2024, and was unaudited. The cement company reported that profit before taxes was N166.4 billion, up 13.3% from the N146.8 billion recorded in the first quarter of 2023.
On the Nigerian Exchange Limited (NGX), Dangote Cement Plc reported a Q1 2024 profit after tax of N112.67 billion, a 3% rise from Q1 2023's N109.5 billion.
Dangote Cement reported N817.35 billion in revenue for the Q1 2024 under review, a notable 101% increase from N406.72 billion in 2023. This increase was attributed to strong volume growth and price increases in line with rising inflation.
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According to the company, sales volumes from its primary operations in Nigeria increased by 26.1% to 4.6 million tonnes in Q1 2024 from 3.6 million tonnes in Q1 2023.
"The strong rebound in Nigeria volumes is due to an uptick in economic activities in comparison to last year when the combined effect of election uncertainties and currency crunch caused a slowdown of infrastructural projects and impacted the retail end of the market.
"As a result, Nigeria's revenue rose 61.6% to N452.9 billion in Q1 2024 from N280.3 billion in Q1 2023. Meanwhile, pan-African volumes continued upward in the first quarter, increasing by 3.1% to 2.7Mt from 2.6Mt in Q1 2023, on the back of improved sales, especially coming from Congo, Zambia, and Ghana.
"Consequently, pan-Africa revenue was up by 201.6% to N381.3 billion, owing to robust demand from the region in addition to price increases.," the company added in a statement obtained by THISDAY.
Dangote Cement Plc's operating profit was N255.3 billion in Q1 2024, representing a 62.7% increase from N156.9 billion in Q1 2023. This brought its margin to 31.2% from 38.6% in Q1 2023.
In a statement, Dangote Cement's CEO, Mr. Arvind Pathak, said, "Our Nigerian operations witnessed a strong rebound, with volumes up 26.1% to 4.6Mt in the quarter, driven by an uptick in economic activities."
Similarly, our pan-Africa operations continued upward, with volumes up 3.1% to 2.7Mt, buoyed by increased sales in Zambia and Congo.
Despite elevated cost pressures, increased borrowing costs, and further currency weakening, our first-quarter results reflect our commitment to navigating challenges effectively. Group revenue more than doubled to N817.4 Billion, while Group EBITDA rose 66.6 percent to N309.5 Billion.
"PAT was up 2.9% at N112.7 billion. These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders.
During the quarter, we intensified our emphasis on exports, dispatching seven ships from Nigeria to Ghana and Cameroon. As a result, our Nigerian exports surged by 87.2%, reflecting our commitment to expanding our presence in regional markets and capitalising on our export-to-import strategy.
"We continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future."
Back Story
On Tuesday, the Dangote refinery announced that aviation fuel and diesel prices would now sell for N980 and N940 per litre, respectively.
This follows the company's announcement last week that it would reduce the diesel price from N1,200 to N1,000 per litre.
In a statement on Tuesday, its Group Head, Corporate Communications, Anthony Chiejina, explained that the company is committed to ensuring that Nigerians have better welfare.
According to the statement, customers purchasing five million litres or more from the refinery will pay N940, while those purchasing one million litres or more will pay N970.
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