Dangote Cement Seeks to Borrow Money From Nigerians as New Prices Emerge
- Dangote Cement is planning to issue bonds in the domestic market to finance most of its operations
- The company stated that it has received the Board of Directors’ approval to access funds from the domestic capital market
- In the first nine months of 2024, the cement company reported N2.5 trillion in revenue via increased sales in the local markets.
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Dangote Cement said it has received the Board of Directors’ approval to access medium to long-term debt funding from the domestic capital markets.
The bonds’ proceeds will refinance existing debt and working capital.
Source: Facebook
Dangote Cement shows impressive financials
In the first nine months of 2024, the cement company reported N2.5 trillion in revenue via increased sales in the local markets.
It disclosed that it has applied to the Securities and Exchange Commission (SEC) regarding the bonds and has received the required approval.
According to a BusinessDay report, the cement maker disclosed that the bond issuance is imminent and subject to favourable market conditions.
The cement firm emerged as one of the most capitalised firms in the Nigerian Exchange (NGX) this.
Africa’s largest cement manufacturer’s monthly financial results show that its revenue grew by 69.1% from N1.5 trillion relative to the same period in 2023, representing 9.5%, and its pan-African market sales declined by 1.6%.
Breakdown of Dangote Cement’s performance
The firm stated that its financial results for the review period show superior performance across crucial metrics as it executes strategic priorities for the year.
The company’s earnings before interest, taxes, depreciation and impairment (EBITDA) grew by 37.10% to N908.69 billion as of September 2024 from N662.76 billion in the same period last year.
An analysis of the figures shows that its EBITDA increased by 37.25% to N506.11 billion while its Africa-wide region rose 45.35% to N175.01 billion.
Pre-tax profit during the review period rose by a single digit by 0.55% to N279.09 billion from N277.5 billion.
Meanwhile, cement dealers have raised the price of a 50kg bag of cement to between N8,800 and N9,000, depending on location.
Similarly, the price of concrete blocks and other building materials has skyrocketed.
Daily Trust reports that cement prices have surged from N4,000 to N8,800 per bag, representing a 100% increase.
Similarly, the Guardian reports that the cement manufacturers' association in Nigeria once again raised the prices of various cement brands.
Another Cement company set to launch
Legit.ng earlier reported that the Bauchi state commissioner for natural resources, Muhammad Maiwada, has assured stakeholders that the new cement factory to be sited in Gwana, Alkaleri local government area, is a move to transform the state’s economy.
Maiwada disclosed this while signing a memorandum of understanding (MoU) with Resident Cement Company and its Korean partners to establish a cement plant with a yearly capacity of 10 million tonnes.
Maiwada disclosed this while signing a memorandum of understanding (MoU) with Resident Cement Company and its Korean partners to establish a cement plant with a yearly capacity of 10 million tonnes.
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Source: Legit.ng
