Dangote Cement’s African Subsidiaries Contribute 41.2% to FY 2023 Sales

March 3, 2024
Dangote Cement stocks
Image Credit: Bloomberg

By Dipo Olowookere

Dangote Cement Plc has revealed that sales from its factories outside Nigeria, its base, improved in the 2023 fiscal year by 12.7 per cent, contributing about 41.2 per cent to its total volume for the period under review, with its Nigerian operations accounting for the rest.

In its audited financial statements for the year ended December 31, 2023, filed to the Nigerian Exchange (NGX) Limited, the cement maker said revenue generated from its pan-African operations increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion.

Business Post reports that last year, the cement firm grew its revenue by 36.4 per cent to N2.208 trillion as its post-tax profit went up by 19.2 per cent to N455.6 billion, and the earnings per share expanded by 18.8 per cent at N26.47.

As a result of these improvements, the board has proposed the payment of N30 per share as dividend to shareholders, 50 per cent higher than the 20 per share paid for the 2022 accounting year.

However, the proposed increase in dividend is subject to ratification by the shareholders at the forthcoming Annual General Meeting (AGM).

Commenting on the company’s performance in the year under review, the Managing Director of Dangote Cement, Mr Arvind Pathak, said, “This positive full-year outcome is a combination of the strength in the diversity of our operations across Africa and our sustained drive to contain cost amidst an accelerating inflationary environment.

“The group achieved double-digit growth in revenue at N2.208 trillion, while group EBITDA reached a record high, increasing 25.1 per cent to N886.0 billion.

“Despite the challenging macroeconomic conditions, 2023 was yet another testament to the effectiveness of our diversification strategy.

“Our diverse operations acted as a cushion, providing resilience to country-specific risks. Pan-African volumes were up 12.7 per cent and now account for 41.2 percent of group volume.

“Consequently, pan-African revenue increased by a record 123.2 per cent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion.”

“In response to the heightened inflationary environment, we implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins.

“These initiatives included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels.

“We also began the phased transition from diesel power trucks to full Compressed Natural Gas (CNG) trucks,” he further stated.

“Looking ahead, following the commissioning of our 0.45Mta grinding plant in Takoradi, we are focusing on our export to import strategy in West and Central Africa, while concurrently optimising assets in Eastern Africa.

“Our strategy remains centred on enhancing our value proposition through the production of high-quality cement and delivering sustainable value to our stakeholders,” Mr Pathak added.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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