Dangote Cement Plc has reported a profit after tax (PAT) of ₦455.6 billion for the 15-month financial period ending 31st December 2024, according to the company’s latest financial statement filed with the Nigerian Exchange Group (NGX).
The report, covering an extended five-quarter period, highlights the company’s performance in a challenging economic environment, characterised by currency devaluation, surging finance costs, and weakening consumer demand.
Revenue and Sales Performance
Dangote Cement posted revenue of ₦2.208 trillion during the period, reflecting strong sales volumes across both Nigeria and its pan-African operations. This revenue surge allowed the company to maintain its market leadership, despite inflationary pressures impacting construction activity.
The company’s cost of sales climbed to ₦1.03 trillion, driven by higher energy costs, raw materials, and logistics expenses. Consequently, gross profit stood at ₦1.176 trillion.
Rising Finance Costs Erode Profitability
Operating profit came in at ₦757.1 billion, but this was heavily impacted by surging finance costs, which reached ₦232.3 billion. The sharp rise in finance expenses stems primarily from foreign exchange losses and higher interest payments on borrowings, exacerbated by the Naira devaluation.
This left Dangote Cement with a profit before tax of ₦524.5 billion, from which the company paid ₦68.9 billion in taxes, resulting in a net profit of ₦455.6 billion.
Currency Exposure and Borrowing Profile
Dangote Cement’s debt burden increased to ₦820.6 billion, reflecting the impact of currency translation losses on its foreign currency loans as well as ongoing investments in capacity expansion.
The devaluation of the Naira in 2024 significantly inflated both finance costs and the Naira equivalent of foreign-denominated obligations, underlining the vulnerability of Nigerian companies to foreign currency exposure.
Strategic Outlook and Cost Control
Despite these pressures, Dangote Cement reiterated its confidence in its long-term strategy, anchored on operational efficiency, energy diversification, and digital sales innovation. The company is actively exploring alternative fuel sources to mitigate energy costs, while deepening its footprint in pan-African markets, which provides some currency risk diversification.
Dividend Commitment
The board has proposed a final dividend to shareholders, a sign of confidence in future cash flows despite tough macroeconomic conditions. Shareholders will vote on the proposed dividend at the forthcoming Annual General Meeting (AGM).
Dangote Cement’s Q5 2024 results reflect resilient revenue growth under challenging conditions, but rising finance costs, currency devaluation, and higher borrowing costs pose ongoing risks. Effective cost control, pricing strategies, and foreign exchange risk management will be critical for safeguarding profitability in 2025.
