Dangote Cement Sales Surge in Q1 2024 on Strong Domestic Demand and Exports
By Patience Ikpeme
Dangote Cement, Africa’s leading cement producer, has reported a significant increase in sales volume for the first quarter of 2024, driven by a rebound in the Nigerian economy and a strategic focus on exports.
The company’s domestic sales volume in Nigeria rose by an impressive 26.1% to 4.6 million tonnes (Mt) compared to the same period last year. This positive performance significantly impacted the Group’s overall volume, which reached 7.0Mt for the quarter.
Dangote Cement’s financial results also reflected this positive momentum. Group revenue more than doubled to N817.4 billion, while Group Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped by 66.6% to N309.5 billion. Profit after tax witnessed a marginal increase of 2.9% to N112.7 billion. Earnings per share closed the quarter at N6.68, representing a 3.7% rise.
Commenting on the results, Dangote Cement’s Chief Executive Officer, Arvind Pathak, attributed the success to an uptick in economic activities in Nigeria and the company’s unwavering commitment to navigating challenges.
He highlighted, “Despite elevated cost pressures, increased borrowing costs, and currency depreciation, our first-quarter results demonstrate our effectiveness in overcoming these obstacles.”
Dangote Cement is taking a proactive approach to expand its market reach and capitalize on regional opportunities. The company significantly increased its Nigerian exports by 87.2% during the quarter, dispatching seven ships carrying cement to Ghana and Cameroon. This strategy aligns with their goal of establishing a strong presence in regional markets.
Innovation and sustainability remain key priorities for Dangote Cement as the company commissioned ten of its planned 17 Alternative Fuel Projects across the Group during the quarter. This initiative underscores their commitment to cleaner energy use and cost leadership.
Dangote Cement’s unwavering commitment to quality and production capacity has transformed Nigeria’s cement industry. The company, with a total capacity of 52.0 million tonnes per annum (Mtpa) across Africa, is not only self-sufficient in cement production but has also positioned itself as a major exporter serving neighboring countries.
Dangote Cement’s strong performance in the first quarter of 2024 positions the company for continued success as Nigeria’s cement leader and a major player in the African market. The company’s focus on innovation, exports, and sustainability positions it well for future growth.
