Dangote boosts revenue by 36% in 2023

Dangote Cement has reported revenue of NGN2.208trn (US$1.365bn) in 2023, up 36.4 per cent from the NGN1.618trn posted in the previous year. Operating profit over the same period advanced from NGN585.88bn to NGN734.27bn, marking an increase of 25.3 per cent.

Gross profit saw a 25.8 per cent advance YoY to NGN1.202trn, while profit after tax improved by 19.2 per cent from NGN382.31bn in 2022 to NGN455.58bn a year later. Earnings per share saw growth of 18.9 per cent over the same timeframe. The company also announced a NGN30/share dividend in 2023, compared to NGN20/share paid out last year. Dangote has consistently been paying dividends for the last five years. 

“Despite the challenging macroeconomic conditions, 2023 was yet another testament to the effectiveness of our diversification strategy,” said Arvind Pathak, group managing director. “Our diverse operations acted as a cushion, providing resilience to country-specific risks. Pan-African volumes were up 12.7 per cent and now account for 41.2 per cent of group volume. Consequently, pan-African revenue increased by a record 123.2 per cent to NGN925.9bn, while EBITDA surged by over four-fold to NGN263.7bn.”

According to the company, its impressive 2023 performance continues to be driven by its operations in Nigeria, that account for around 59 per cent of group revenue. The company is also gaining market share across the continent with its pan-Africa volumes advancing by 12.7 per cent in 2023 to 11.3Mt. 

“In response to the heightened inflationary environment, we implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins. These initiatives included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels. We also began the phased transition from diesel power trucks to full Compressed Natural Gas (CNG) trucks, added Mr Pathak.

“Looking ahead, following the commissioning of our 0.45Mta grinding plant in Takoradi, we are focussing on our "export to import" strategy in West and Central Africa, while concurrently optimising assets in Eastern Africa. Our strategy remains centered on enhancing our value proposition through the production of high-quality cement and delivering sustainable value to our stakeholders," he said.