New Cement Price Emerges As Dangote Cement Declares Massive Profit
- Dangote Cement has announced a jump in profits, weeks after slashing its cement price due to the federal government's intervention
- The company announced a profit before tax of N112.7 billion after the first three months of 2024
- Arvind Pathak, chief executive officer of Dangote Cement, provided detailed breakdown of the company's financial performance
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Cement Plc, a building materials company in the industrial goods sector, declared N817.4 billion in revenue for the first three months of 2024.
This represents a 101% increase when compared to N406.7 billion in revenue in the same period in 2023.
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The figures were disclosed in the company's latest unaudited financial statement published on the NGX website.
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Breakdown of Dangote revenue
The financials also showed that the company reported a 26.1% increase in domestic sales volumes to 4.6Mt from 3.6Mt.
Arvind Pathak, chief executive officer of Dangote Cement was quoted as saying:
“Driven by an uptick in economic activities, our Nigerian operations witnessed a strong rebound, with volumes up 26.1 percent to 4.6Mt in the quarter.
"Similarly, our pan-Africa operations continued an upward trajectory, with volumes up 3.1 percent to 2.7Mt, buoyed by increased sales in Zambia and Congo.
"Despite elevated cost pressures, increased borrowing costs, and a further currency weakening, our first-quarter results reflect our commitment to navigating challenges effectively."
Pathak also said that during the quarter, the company intensified its emphasis on exports, dispatching seven ships from Nigeria to Ghana and Cameroon.
He added:
“Group revenue more than doubled to N817.4 billion, while group EBITDA rose 66.6% to N309.5 billion.
"After-tax profit was up 2.9% at N112.7 billion. These results underscore our ability to adapt and thrive in a dynamic business environment while delivering value to our stakeholders."
He further stressed that Dangote Cement has eliminated Nigeria’s dependence on imported cement and has transformed the nation into an exporter of cement serving neighbouring countries.
New Cement prices
A recent report by Legit.ng indicates that manufacturers have already begun selling the product at a reduced rate in some parts of the country.
Nigeria's three biggest cement manufacturers, BUA Cement, Dangote Cement, and Lafarge Africa, agreed to lower their cement prices to N8,000 and N7,000 following a meeting with the Nigerian government.
The new prices have already been implemented in most states.
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Source: Legit.ng
