Dangote Cement Plc reported a pre-tax profit of N293 billion in the first half of 2024, up 22% from N239.9 billion in the same period in 2023.
During the period, the group reported revenue of N1.76 trillion, which represents an 85% year-over-year improvement from the N950.8 billion reported in H1 2023.
Nevertheless, a 118% YoY increase in the manufacturing cost of sales to N833.3 billion from N383.1 billion as of H1 2023 accompanied the revenue growth.
Key Differences Between H1 2024 and H1 2023
- Revenue: N1.76 trillion, up 85% YoY
- Production cost of sales: N833.3 billion, up 118% YoY
- Gross profit: N926.8 billion, up 63% YoY
- Operating profit: N551.6 billion, up 45% YoY
- Operating margin: 31%, down 900 bps YoY
- Finance costs: N332.5 billion, up 104% YoY
- Profit before tax: N292.3 billion, up 22% YoY
- Profit for the period: N189.9 billion, up 6% YoY
- Earnings per share: N11.26, up 8% YoY
- Total assets: N5.4 trillion, up 36% YoY
The company’s production volume during that time was 13.792 million tonnes, which is 4% more than it was in H1 2023 (13.249 million tonnes).
Additionally, Dangote Cement reported N807 billion in sales from its non-Nigerian operations, a 140% increase over the N336.4 billion in revenue reported by the same firms in the first half of 2023.
However, throughout that time, the group reported an N68.5 billion net loss from these firms.
Compared to the N6.7 billion gain reported in H1 2023, the group’s financial condition showed a gain of N49.1 billion in H1 2024.
In H1 2023, the group reported a net foreign exchange loss of N113.6 billion; however, within that same period, the net FX loss increased by 77% to N201.3 billion.
The business is also suffering from a high interest rate environment; as of H1 2023, its interest expenses had grown to N130 billion, a 167% YoY increase from N48.8 billion.
The power cost of Dangote Cement increased from N157 billion in H1 2023 to N374.8 billion in H1 2024, a 139% annual increase. The cost of the group’s raw materials increased by 95% to N201 billion throughout that period from N102.8 billion as of H1 2023.
As of FYE 2023, the group’s tax liability was N174.3 billion; this represents an increase of N20.3 billion. Currently, the tax liability is N194.6 billion.
Financial Obligations of the Group
As of FYE 2023, Dangote Cement Plc has trade and other payables of approximately N928.8 billion, a 50% increase from N620 billion.
The trade payables, which total N292 billion and represent a 59% rise from the N184 billion trade payables at the end of 2023, make up the majority of the payables.
Additionally, the group’s withholding tax burden increased from N64.6 billion at the beginning of the year to around N140 billion.
The financial statement indicates that Dangote Cement is becoming less dependent on bank loans for funding.
By the conclusion of the 2024 half-year, the group’s bond and commercial paper liabilities had dropped from N462.2 billion at the beginning of the year to N434.4 billion.
Letters of credit were the group’s main source of financial liabilities during that time. Letters of credit from Dangote Cement climbed dramatically, from N116.7 billion at the start of the year to N501.2 billion. Â
