Dangote Cement’s Half-Year Profit Soars 174% Despite Sales Decline
- Firm surpasses full-year 2024 earnings in six months
Africa’s largest cement producer saw its profit after tax for the first half of the year jump 174 percent to N520.5 billion despite a reduction in sales in most of its countries of operation.
Dangote Cement, which has operations in nine countries, sold 13.4 million metric tonnes of the building material, down 4.1 percent compared to the same period a year earlier.
But its net income was boosted by a combination of price increases that lifted its revenue by 17% to N2.07 trillion, a 357% surge in finance income and a 35% decline in finance costs, Markets Reporters’ analysis of its latest financials shows.
The company said revenue from Nigeria, its base and biggest market, increased by 45.5% year-on-year to N1.44 trillion, driven by price adjustments to keep up with inflation.
Elsewhere, its revenue fell by 15.5% to N682.1 billion, primarily due to lower sales, the company said.
“Our focus on operational efficiency and cost containment is delivering tangible results,” Arvind Pathak, chief executive officer, said. “While group volumes declined by 4.1% to 13.4Mt, due to softer demand in key markets, we remain encouraged by the growth in our export business. Export volumes from Nigeria increased by 18.2%, with 18 successful clinker shipments made to Ghana and Cameroon.”
“Our strategic priorities remain focused on long-term value creation. We have made significant progress in further strengthening our cost architecture. During the period, we began the phased delivery of 1,600 additional CNG-powered trucks, which will significantly reduce our logistics costs and enhance environmental efficiency,” he added.
