Lagos, Nigeria – Dangote Cement Plc has announced a profit before tax of N732.54 billion for the financial year ended December 31, 2024, reflecting a 32.44% increase from 2023. The company also maintained its N30 per share dividend, reinforcing its commitment to shareholder value.
According to its annual report reviewed by REPORT AFRIQUE, Dangote Cement’s full-year revenue surged 62.16% year-on-year (YoY) to N3.58 trillion, driven by strong domestic and Pan-African sales of cement and clinker.
- Financial Highlights (2024 vs. 2023)
- Revenue: N3.58 trillion (+62.16% YoY)
- Gross Profit: N1.94 trillion (+61.00% YoY)
- Operating Profit: N1.15 trillion (+56.90% YoY)
- Profit After Tax: N503.25 billion (+10.47% YoY)
- Earnings Per Share: N29.74 (+12.35% YoY)
- Total Assets: N6.40 trillion (+62.57% YoY)
- Shareholders’ Funds: N2.18 trillion (+26.04% YoY)
Revenue Growth Driven by Strong Nigerian and Pan-African Sales
Dangote Cement’s Nigerian operations generated N2.06 trillion in revenue, up 64% YoY, while Pan-African revenue stood at N1.4 trillion, reflecting a 57% YoY increase. The company’s total production capacity remained 52 million tons, with production volume rising modestly by 1.01% to 26.95 million tons and sales volume increasing by 1.57% to 27.71 million tons.
This suggests that the revenue surge was primarily driven by higher pricing strategies, product mix improvements, and foreign exchange effects, rather than a significant increase in sales volume.
Rising Costs and Impact on Margins
Despite revenue growth, the cost of sales rose 63.54% YoY to N1.65 trillion, driven by higher raw material and fuel costs. However, Dangote Cement maintained a 54% gross profit margin, showing its ability to manage cost pressures.
Operating profit margin declined slightly to 32% (from 35.24% in 2023), as selling, distribution, and administrative expenses grew by 69.45% and 74.29%, respectively.
Rising Finance Costs Due to Debt and Forex Losses
A key challenge for Dangote Cement in 2024 was its soaring finance costs, which increased 125.20% to N700.30 billion. This was driven by:
Interest Expenses: N448 billion (+210% YoY)
Foreign Exchange Losses: N249 billion (+52% YoY)
The company’s net debt surged 286% to N2.18 trillion, reducing its interest coverage ratio from 5.08x in 2023 to 2.57x in 2024, signaling higher financial strain.
Strong Balance Sheet Despite Debt Pressure
Total assets grew 62.57% to N6.40 trillion, while shareholders’ funds increased 26.04% to N2.18 trillion, keeping the company’s leverage ratio stable at 2.94x. However, asset turnover declined by 0.56%, reflecting lower efficiency in revenue generation.
Shareholder Returns and Market Outlook
Despite strong earnings, return on equity (ROE) dropped to 23.14%, affected by lower asset efficiency and profit margins. However, retained earnings remain robust at N1.03 trillion, allowing the company to sustain its N30 per share dividend payout, the same as in 2023.
The stock has seen only a 0.25% year-to-date (YtD) return as of February 2025, meaning share price performance will depend on investor sentiment.
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