Dangote Cement posts N732.54bn PBT, revenue soars by 62% 2024

Dangote Cement Plc has announced a profit before tax (PBT) of N732.537 billion for the financial year ended December 31, 2024, marking a 32.44 per cent year-on-year (YoY) increase from 2023.

The company’s full-year revenue surged by an impressive 62.16 per cent to N3.581 trillion, driven largely by strong performance in Nigeria, which accounted for 57 per cent of total revenue from cement and clinker sales.

According to its annual report and financial statements, Dangote Cement’s Directors have proposed a dividend of N30.00 per share for the 2024 financial year, maintaining the same payout as in 2023.

The Board stated that the dividend aligns with the company’s strategic growth objectives and commitment to reinforcing shareholder value.

While both regions experienced robust growth, Nigeria remains the dominant revenue contributor, accounting for 58 per cent of total revenue.

Despite the strong revenue growth, production capacity remained at 52 million tons, suggesting that the surge was driven by pricing strategies and currency effects rather than an increase in production capacity.

The modest increase in production and sales volumes suggests that revenue growth was not volume-driven but influenced by price adjustments, improved product mix, and foreign exchange gains.

This aligns with industry trends, where pricing strategies play a significant role in revenue expansion.

The cost of sales grew faster than revenue, primarily due to rising raw material costs and high fuel expenses, which account for over 67 per cent of total cost of sales.

Despite this, the gross profit margin remains strong at 54 per cent, showing that cost of sales consumes about half of total revenue.

Selling, distribution, and administrative expenses increased significantly, absorbing 56 per cent of gross profit, leading to a decline in operating profit margin to 32 per cent, down 3.24 per cent from 2023.

Nevertheless, the 32 per cent margin remains solid, reflecting the company’s ability to sustain profitability despite cost pressures.

Finance income surged to N168.572 billion, driven by gains on net monetary position.

However, finance costs soared to N700.299 billion, mainly due to the sharp rise in interest expenses attributed to a 286 per cent increase in net debt, which reached N2.182 trillion in 2024.

As a result, the interest coverage ratio declined to 2.57x from 5.08x in 2023, indicating a reduced ability to cover interest obligations.

Dangote Cement’s 2024 financial performance reflects strong revenue growth, driven by price adjustments and foreign exchange effects rather than significant volume increases.

While profitability remains robust, rising finance costs and debt obligations present challenges. The company’s strategic expansion in Pan-Africa and continued dominance in the Nigerian market reinforce its position as a key player in the cement industry.