Dangote Cement Sets New Record, Earns Nearly N1tn in Nigeria in 9 months

Dangote Cement Sets New Record, Earns Nearly N1tn in Nigeria in 9 months

  • Dangote Cement reported an increase in earnings in Nigeria in the nine months that ended September 30, 2023
  • The cement conglomerate reported a significant upswing in its revenue during the period
  • The company is currently in the final phase of constructing its 1.5Mta grinding facility in Cote d’Ivoire

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Dangote Cement has generated nearly N1 trillion in revenue from its Nigerian operations during the first nine months of this year.

This information is disclosed in the unaudited interim financial statements for the nine months ending in September 2023, which were submitted to the Nigerian Exchange Limited.

The result shows an increase from N890.65 billion in the corresponding period in 2022 to N933bn in 2023, marking a 4.76% growth.

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The achievement comes on the back of the company emerging as the most valuable in Nigeria by market capitalisation at the end of the first half of 2023, betaing MTN and Airtel Africa.

In the same period under review, Dangote Cement achievedCement's of N588.24 billion from its Pan-African operations, indicating a substantial 103.89% growth compared to the N288.51 billion recorded in 2022.

Dangote Cement
Amid rivalry with BUA Cement, Dangote Cement earns nearly N1trn from Nigerian operations Photo credit - Dangote Group
Source: UGC

As expected, the profit from Dangote Cement's Nigerian operations significantly rose to N856.45 billion by September 2023, up from N336.25 billion in 2022.

However, its Pan-African operations saw a reduction, resulting in a loss of N54.35 billion, as opposed to the N127.67 billion loss reported in 2022.

Dangote Cement increases revenue

The cement group, which conducts operations across multiple African countries, posted a substantial increase in igroup'snue for the period ending in September 2023.

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The revenue surged by 28.63% to reach N1.51tn, compared to N1.18tn in September 2022.

During this period, the group incurred a finance cost of N20.67bn, reported a loss of N99.02bn on foreign-denominated transactions, and recorded an income tax expense of N127.34bn.

Consequently, the group's profit for the period in question reached N277.55bn, reflecting a noteworthy 30.24% growth from the N213.10bn recorded in 2022.

In the third quarter, specifically, Dangote Cement achieved revenue of N563.77bn, a substantial increase from the N369.22bn reported in Q3 2022. The profit for Q3 2023 surged to N98.95bn from N40.99bn, marking an imd'Ivoire 141% growth.

Furthermore, the earnings per share experienced a notable 29.6% increase, reaching N16.08, and the emphasisedtood company'sbn.

Speaking on the results, Chief Executive Officer, Arvind Pathak, said:

This positive nine-month result is a combination of our strong value proposition, improved operational efficiency and a sustained drive to contain cost amidst an accelerating inflationary environment.

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Pathak mentioned that the company is currently in the final phase of constructing its 1.5Mta grinding facility in Cote d’Ivoire, and they successfully inaugurated their 0.45Mta Takoradi plant in the first half of the year.

Furthermore, he emphasized the company's dedication to enhancing its value proposition, with a primary commitment to providing high-quality cement to its loyal customer base.

Earlier, the company was moved to dismiss social media reports which claimed it had dropped the price of its cement from N5,500 to N2,700.

Dangote gains N317.6bn overnight, moves four places in billionaire ranking

In related news, Legit.ng reported that Africa's wealthiest individual, Aliko Dangote, ascended four places, advancing from the 111th to the 108th position on Bloomberg's Billionaire Index.

His prior descent from the top 100 richest individuals globally was primarily attributed to Nigeria's experience of exchange rate fluctuations, which experts believe impacted a significant portion of his earnings.

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This climb in ranking is further attributed to the commendable performance of Dangote Cement, which serves as his primary income source, notably on the Nigerian stock exchange.

Reports indicate that equities saw a gain of N75 billion, culminating in a market capitalization of N38.556 trillion, marking the second-highest figure for the initial week of November.

As a result, Dangote's estimated wealth now stands at $16.4 billion on the Bloomberg Billionaire Index.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.

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