Dangote Cement, Africa’s largest cement producer, achieved an all-time quarterly revenue high in the year to March as the binder price virtually doubled year on year.
In February, the retail price of cement in several parts of Nigeria increased to between N10,000 and N12,000, up from N5,000 to N6,000 in January.
Dangote Cement’s latest financial report shows a turnover of N817.4 billion.
Revenue increased by 26.1% in Nigeria, its home operation, as consignments of seven ships of clinker were transferred to nearby Cameroon and Ghana during the time, increasing exports.
Growing profit was difficult throughout the time due to several issues, including dramatically higher production costs, which put gross profit under pressure, and a 551.4 percent increase in net exchange loss, made possible by a much weaker naira.
Arvind Pathak, the CEO, said in a statement: “Despite elevated cost pressures, increased borrowing costs, and a further currency weakening, our first-quarter results reflect our commitment to navigating challenges effectively.”
“During the quarter, we increased our focus on exports, sending seven ships from Nigeria to Ghana and Cameroon. As a result, Nigerian exports increased by 87.2%,” the helmsman stated.
That occurred despite inflation continuing to rise, reaching its highest level in 28 years in March.
It might set the tone for the country’s third rate hike this year, as the Central Bank of Nigeria seeks a solution to a long-running cost-of-living crisis that is straining companies’ finances and wearing down consumers’ and households’ purchasing power.
Profit before tax increased by 13.3% to N166.4 billion, while profit after tax rose by 2.9% to N112.7 billion.
Dangote Cement, which has a large presence in African markets, made an unusual revenue of N410.4 billion by transforming net gains from pan-African investments into naira, whose exchange rate to the dollar reached a new high after a devaluation earlier this year.
On that front, total comprehensive income for the period totaled N523 billion, more than five times the number for the first quarter of 2023.
