Dangote posts 53% YoY rise in revenue in 3Q23

Dangote Cement Plc has reported revenue of NGN563.77bn (US$703.77m) in the third quarter of 2023, up 52.7 per cent compared to the same period in the previous year. Gross profit over the same period advanced by 46.3 per cent to NGN304.11bn, while pretax profit surged 132.4 per cent to NGN165.03bn. Profit after tax leapt to NGN98.95bn, marking a 141.3 per cent YoY advance. Meanwhile, earnings per share were up by 138.3 per cent YoY to NGN5.38 in the 3Q23. 

Even with a 33 per cent YoY rise in operating expenses over the three-month period, the group still saw its operating margin improve to 32.1 per cent, versus 31.3 per cent in the 3Q22. Group EBITDA totalled NGN662.8bn, up 28.5 per cent.

Over the first nine months of 2023, the company also saw signifiant growth with revenue up 28.7 per cent YoY to NGN1.514trn compared to the 9M22, while profit before tax advanced by 20.54 per cent to NGN404.89bn. 

Pan-African operations
Dangote Cement’s pan-African cement volumes rose by 15.2 per cent in 9M23 to 8.5Mt.  Pan-African revenues rose to NGN588.23bn up 103.9 per cent from NGN288,51bn in the 9M22. EBITDA totalled NGN508.12bn in Nigeria for the 9M23, up 5.9 per cent from NGN479.92bn in the 9M22. Alternative fuel thermal substitution rate in the group reached 9.8 per cent from 3.8 per cent n 9M22, having seen nine alternative fuel projects completed across the group. The Côte d’Ivoire 1.5Mta greenfield integrated cement plant project has also reached an advanced stage. 

In Cameroon, Dangote sold 1Mt of cement in 9N23, up 1.6 per cent. In Congo the group sold 0.612Mt of cement in 9M23, an increase of 60.5 per cent on the prior year. Ethiopian cement sales totalled 1.9Mt in the 9M23, up 6.5 per cent on the 9M22. Ghana cement sales totalled 0.232Mt in the 9M23, up 15 per cent YoY. Senegalese cement sales rose 66.9 per cent during the 9M23 to 1.2Mt.In Sierra Leone 0.04Mt of cement were sold in the 9M23. South African cement sales in the 9M23 rose 8.5 per cent YoY. Tanzania’s cement sales reached 1.5Mt in the 9M23, up 6.5 per cent YoY. Finally, the group’s Zambian cement sales totalled 0.55Mt in the 9M23, up 18 per cent YoY. 

Domestic market
However, Nigeria’s cement volumes for Dangote totalled 12.02Mt in the 9M23 down 10.9 per cent from 13.48Mt in the 9M22. Pan-African cement volumes rose on strong performances in Ethiopia, Cameroon, Senegal, Zambia and Congo. Nigerian revenue reached NGN933.08bn up 4.8 per cnet from NGN890.65bn in the 9M22. EBITDA in pan-African operations reached NGN170.2bn up 255.4 per cent from NGN47.84bn in the 9M22. The company started grinding operations at the 0.45Mta Ghana grinding plant and Okpella plant in Nigeria readied its alternative fuel system to be commissioned in December 2023. The company exported 0.497Mt of cement and clinker from Nigeria during the acounting period, down slightly due to halted exports to Niger. 

“Total group volumes  of cement fell 2.4 per cent during the 9M23 period to 20.3Mt owing to election uncertainty, cash unavailability and FX devaluation impacting Nigerian volumes,” said Dangote Cement.