Dangote Cement Plc reported a net profit of N503.2 billion in its 2024 financial year, reflecting a 10 percent increase from the N455.6 billion recorded in 2023, despite facing significant financial pressures from foreign exchange losses and rising interest expenses.
The cement giant posted a revenue of N3.58 trillion in 2024, representing a 62 percent rise compared to N2.21 trillion recorded in the previous year. The company’s gross profit stood at N1.9 trillion, maintaining a 54 percent gross margin, the same as in 2023.
Dangote Cement’s operating profit also saw an impressive 57% growth, reaching N1.15 trillion from N734.3 billion in 2023. However, the company’s bottom line was impacted by N700 billion in interest expenses, which included N448.1 billion in finance costs and N249 billion in foreign exchange losses from its pan-African operations.
The group’s pre-tax profit climbed to N732.5 billion, up from N553.1 billion in 2023, despite mounting financial obligations. After deducting N229.3 billion in tax expenses, Dangote Cement’s net profit stood at N503.2 billion.
Pan-African Operations Performance
Dangote Cement’s Nigerian operations delivered a net profit of N1.18 trillion, driven by domestic sales revenue of N2.06 trillion and N128.3 billion in cement exports. However, the group’s African operations reported a net loss of N24.4 billion, despite generating N1.48 trillion in revenue from various African markets, including South Africa, Ethiopia, Zambia, Senegal, DR Congo, and Kenya.
Financial Position and Cash Flow
The company’s total assets surged by 63 percent to N6.4 trillion in 2024, compared to N3.94 trillion in 2023. Net assets rose to N2.18 trillion, reflecting an improvement from N1.73 trillion in the previous year.
However, the company’s net cash position significantly declined by 70 percent to N131.7 billion at the end of 2024, down from N432.2 billion in 2023. Despite the cash reduction, operating cash flow increased to N821.1 billion, up from N678.8 billion in the previous year.
Dangote Cement’s earnings per share (EPS) rose to N29.74, with its stock currently trading at N480 per share, giving the stock a price-to-earnings ratio of 16.13x — making it one of the cheapest industrial goods stocks on the Nigerian Exchange.
The company remains one of the largest cement producers in Africa and continues to play a significant role in the continent’s infrastructure development.
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