Dangote Cement has issued its unaudited financial records for Q1 2024, which show a gross turnover of N817.35 billion, a 101% increase over the N406.7 billion sales reported in Q1 2022.
Despite tremendous revenue growth during the quarter under review, the group’s pre-tax profit was N166.4 billion, up 13.3% year on year from N146.8 billion in Q1 2023.
The group’s profit after tax growth was even slimmer, with the Q1 2024 profit after tax (PAT) of N112.7 billion, a marginal 3% YoY increase over the N109.5 billion Q1 2023 PAT.
Key Highlights Q1 2024 vs Q1 2023
- Revenue: N817.4 billion, +101% YoY
- Production cost of sales: N398.2 billion, +143% YoY
- Gross profit: N419.2 billion, +72% YoY
- Selling and distribution expenses: N145.3 billion, +111% YoY
- Operating expenses: N255.3 billion, +63% YoY
- Finance costs: N123.2 billion, +279% YoY
- Profit before tax: N166.4 billion, +13% YoY
- Profit for the period: N112.7 billion, +3% YoY
- Earnings per share: N6.68, +4% YoY
- Total Assets: N5.1 trillion, +30% YTD
- Cash and cash equivalents at the end of the period: N488.4 billion, +96.5% YoY.
During the quarter under review, the group posted a production volume of 7.071 million tonnes, marking a year-on-year increase of 11.5% from Q1 2023’s 6.34 million tonnes. The group also sold 7.04 million tonnes of cement during the quarter, compared to 6.27 million tonnes sold in Q1 2023.
The significant revenue growth posted in Q1 2024 was offset by a net foreign exchange (FX) loss of N63.8 billion which was a 551% year-on-year increase from the N9.8 billion net FX loss posted in Q1 2023.
The group was also affected by the hike in benchmark interest rate, as its interest expenses hit N58.9 billion in Q1 2024, representing a 163% year-on-year increase from the N22.4 billion interest expense incurred in Q1 2023.