Dangote Cement has significantly bolstered foreign exchange inflows into Nigeria through its extensive pan-African operations. The company’s half-year results reveal a staggering 139.9% increase in revenue from these operations, climbing to N807.1 billion from N336.4 billion in the corresponding period of 2023.
In addition, the cement giant reported a 10.9% rise in the Nigerian market, with volumes increasing from 8.0Mt to 9.0Mt for the half-year ending June 30, 2024. The company’s group volumes grew by 3.8% to 13.9Mt, while group revenue surged by 85% to N1,760 billion, compared to N950 billion in the same period last year. This impressive growth was driven by a 60% increase in Nigerian revenue, which rose to N991 billion from N618 billion.
In its ongoing commitment to environmental sustainability, Dangote Cement commissioned 11 out of 17 Alternative Fuel Projects across the Group and acquired 300 full CNG trucks for its Nigerian operations. The company achieved a thermal substitution rate of 10.5% in H1 2024, up from 7.8% in H1 2023.
Chief Executive Officer of Dangote Cement, Arvind Pathak, stated, “We effectively navigated macroeconomic headwinds to deliver positive results in the first half of the year. Group volumes were up 3.8%, with our Nigeria operations achieving double-digit volume growth of 10.9%. This growth was driven by improved efficiency across our operations and supported by increased market activity levels compared to the election year and cash crunch in 2023.”
Pathak continued, “Despite the challenges of elevated inflation, high borrowing costs, and a further weakening of the currency in the first six months of the year, our business demonstrated strong resilience. This was due to our rigorous focus on cost minimisation and our diversified business model.”
He further added, “Group revenue and EBITDA rose 85.1% and 50.3% to ₦1,760.1 billion and ₦666.2 billion, respectively. Our Profit After Tax (PAT) reached ₦189.9 billion, marking a 6.3% increase. I am pleased with the performance of our business, as key financial indicators are showing positive trends.”
Dangote Cement also leveraged its robust export-to-import strategy, completing fourteen shipments of clinker from Nigeria to Ghana and Cameroon, resulting in a 55.2% increase in Nigerian exports. This underscores the company’s commitment to fostering African self-sufficiency.
Looking ahead, Pathak expressed optimism about the growth prospects in Africa, highlighting the company’s increased capital investments. He emphasized prioritizing innovation, cleaner energy transition, and cost leadership as part of the vision to transform Africa and build a sustainable future.
