Dangote Cement, Africa’s largest cement producer, has announced a net profit of N503.2 billion for the 2024 financial year, marking a 10% increase from the N455.6 billion recorded in 2023. The group’s revenue also saw significant growth, rising by 62% to N3.58 trillion, compared to N2.21 trillion in the previous year.
Despite facing financial pressures, including high interest expenses and foreign exchange losses, the company maintained a robust gross margin of 54%, consistent with its 2023 performance. Gross profit for the year stood at N1.9 trillion, up from N1.2 trillion in 2023.
Operating Performance and Financial Challenges
Dangote Cement’s operating profit surged by 57% to N1.15 trillion in 2024, up from N734.3 billion in 2023. However, the group faced substantial financial headwinds, with interest expenses totaling N448.1 billion and foreign exchange losses from its international operations reaching N249 billion. Combined, these expenses amounted to N700 billion for the year.
Despite these challenges, the group’s pre-tax profit rose to N732.5 billion, a significant increase from N553.1 billion in 2023. After accounting for a net tax expense of N229.3 billion, Dangote Cement’s net profit settled at N503.2 billion.
Regional Performance Highlights
A closer look at the group’s operations reveals a stark contrast between its Nigerian and other African markets. While Dangote Cement’s Nigerian operations delivered a net profit of N1.18 trillion, its other African operations recorded a net loss of N24.4 billion.
In Nigeria, the group generated N2.06 trillion from cement sales and exported an additional N128.3 billion worth of cement. Meanwhile, its other African operations contributed N1.48 trillion in revenue. Dangote Cement operates in several African countries, including South Africa, Ethiopia, Zambia, Senegal, DR Congo, Kenya, Madagascar, Nepal, Zimbabwe, and Congo.
Balance Sheet and Cash Flow
Dangote Cement’s total assets grew by 63% to N6.4 trillion in 2024, up from N3.94 trillion in 2023. Net assets also increased to N2.18 trillion, compared to N1.73 trillion the previous year.
However, the group’s cash position declined significantly, with net cash dropping by 70% to N131.7 billion at the end of 2024, down from N432.2 billion in 2023. Despite this, operating cash flow improved, rising to N821.1 billion from N678.8 billion in 2023.
Share Performance and Valuation
The group’s earnings per share (EPS) increased to N29.74 in 2024. With a share price of N480, Dangote Cement’s stock trades at a price-to-earnings (P/E) ratio of 16.13x, positioning it as one of the most affordable industrial goods stocks on the market.