Dangote Cement reports impressive profit, speaks on transitioning to CNG-powered vehicle

• Financial report has shown that Dangote Cement made a significant profit in the first half of 2024
• The group's operations in Nigeria and the pan-African region generated ₦1,760.1 billion in revenue, an increase of 85.1%
• In H1 2024, revenue from the Nigerian operations climbed by 60.3% to N991.4B, despite the difficulties in this region

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Dangote Cement has reported an impressive profit for the half year 2024.

Dangote Cement reported a 6.3% increase in earnings after taxes in H1 2024. Photo Credit: Dangote Cement
Source: UGC

The company noted an increase in profit after tax up 6.3% to N189.9 billion in the period.

According to its financial report on the Nigerian Exchange, the group’s revenue was up 85.1% to N1,760.1 billion from its operations in Nigeria and pan-Africa region.

The Nigerian region includes Dangote Cement Plc which has plants in Obajana, Ibese and Gboko; DCP Cement Ltd with a 3Mt plant in Obajana; and Okpella Cement Plc’s 3Mt plant.

Despite the challenges in this region, revenue from the Nigerian operations increased by 60.3% to N991.4 billion in H1 2024, while EBITDA rose by 29.1% to N463.6B, excluding central costs and eliminations (H1 2023: N359.1 billion, margin of 58.0%).

Pan-Africa operations

The cement compay’s pan-African operations maintained a growth trajectory with volumes slightly up 1.2% to 5.5Mt in H1 2024 from 5.4Mt in the corresponding period of 2023. This growth was driven by robust demand from key markets, such as Congo, Zambia and Ghana.

As a result, total pan-African revenue of N807.1B in H1 2024 was up by 139.9% from H1 2023. The region’s revenue accounted for 45.9% of total Group revenue, supported by volume growth in addition to price increases in some selected countries.

Speaking on the performance of the company, Arvind Pathak, Chief Executive Officer, said that despite the challenges of elevated inflation, high borrowing cost and a further weakening of the currency in the first six months of the year, the business demonstrated strong resilience.

He added,

“By leveraging our robust export-to-import strategy, Dangote Cement completed 14 shipments of clinker from Nigeria to Ghana and Cameroon. This effort resulted in a 55.2% surge in our Nigerian exports, underscoring our commitment to fostering African self-sufficiency.“Looking ahead, we remain bullish about the growth prospect of the African region, evident in our increased capital investments. We continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future.”

Dangote announces date to shift operations to CNG-powered trucks

Legit.ng reported that Dangote Cement Plc plans to deploy 1,500 Compressed Natural Gas (CNG) delivery trucks across its Nigerian operations as part of its efforts to adopt cleaner energy.

The Group Managing Director, Arvind Pathak, revealed this initiative during a virtual conference call with investors and analysts.

Recall that Legit.ng had previously reported that the company announced plans for thousands of the company's delivery trucks to operate exclusively on CNG from next year.

Source: Legit.ng