In the first nine months of this year, Dangote Cement recorded N933.08 billion in revenue from its Nigerian operations, up 4.76 percent from N890.65 billion in the same time in 2022.
The unaudited interim financial accounts for the nine months ending in September 2023 that were submitted to the Nigerian Exchange Limited disclosed this.
It was discovered that Dangote Cement’s Pan-African business brought in N588.24 billion during the review period, a 103.89 percent increase over the N288.51 billion in revenue reported for 2022.
Profit from Dangote Cement’s Nigerian operations increased as expected, from N336.25bn in 2022 to N856.45bn at the end of September 2023. Its Pan-African activities did, however, moderate from the N127.67bn deficit in 2022 to a loss of N54.35bn.
The cement firm, which operates in multiple African nations, recorded a 28.63 percent increase in sales from N1.18 trillion in September 2022 to N1.51 trillion at the end of September 2023.
The group’s earnings for the reviewed period was N277.55bn, up 30.24 percent from N213.10bn in 2022, after financing costs of N20.67bn, a loss on foreign-denominated transactions of N99.02bn, and income tax expenses of N127.34bn.
Dangote Cement reported revenue of N563.77bn for the third quarter, or three months, as opposed to N369.22 for the same time in 2022. Its earnings for the third quarter of 2023 increased by around 141% to N98.95 billion from N40.99 billion.
Its net debt was N507.7bn, and its earnings per share increased by 29.6% to N16.08.
The Nigerian Naira depreciated significantly in June 2023, moving from N465 per dollar at the end of May 2023 to close at N756/$ in June 2023. This resulted in a net exchange loss of N116.1bn from third-party loans and payables in the Nigerian entities, according to Dangote Cement’s notes accompanying the reports.
Its cash and cash equivalents include letters of credit for the purchase of inventory, property, plant, and equipment, as well as a debt service reserve account. Restricted cash on unclaimed dividends held in a separate bank account totals N5.38 billion for the Group and N4.93 billion for the Company as of December 2022.
Dangote’s publicly traded bonds have a face value of N266 billion as of September 2023 and a coupon rate ranging from 11.25 percent to 13.5%. Its commercial papers were issued under a plan with a face value of N170 billion, and the duration ranges from three to ten years. The period of time is between 176 and 267 days, and the discount ranges from 10% to 13%.
Speaking on the results, Chief Executive Officer, Arvind Pathak, said “This positive nine-month result is a combination of our strong value proposition, improved operational efficiency and a sustained drive to contain cost amidst an accelerating inflationary environment. We achieved double-digit growth in Group revenue at N1.514.6bn, while EBITDA rose to an all-time high of N662.8bn, up 28.5 per cent. Again, we continue to show the strength in the diversity of our operations. Our pan-African operations generated a record revenue and EBITDA growth of 103.9 per cent and 255.4 per cent, respectively, contributing 41.9 per cent to Group volumes. This unprecedented growth was driven by sustained demand across our countries of operation.
“We will continue to explore emerging opportunities and export strategies around the region to further consolidate the Group performance. Albeit the current inflationary environment and its impact on operating costs, we have flagged off the ‘distributors promo’ across various regions in Nigeria. This, we believe would support our customers by creating a positive income effect for purchasers of Dangote Cement.”
In terms of outlook, Pathak, said, “Looking ahead, we are at the final stage in the completion of our 1.5Mta grinding plant in Cote d’Ivoire, having commissioned our 0.45Mta Takoradi plant in the first half of the year. We are focused on improving our value proposition, anchored on our promise to deliver strong and superior cement to our unwavering customers. I am very pleased with the direction of our business and confident we will finish the year strong.”
Having a 52.0 Mta capacity throughout Africa, Dangote Cement is the continent’s top cement producer.
PUNCH
