Dangote Cement earns N933bn from Nigerian operation

These figures were disclosed in the unaudited interim financial statements for the nine months ending in September 2023, which were filed with the Nigerian Exchange Limited

Aliko Dangote

Dangote Cement’s Nigerian operations have generated nearly N1tn in revenue in the first nine months of this year, recording N933.08bn compared to N890.65bn in the same period in 2022, marking a 4.76 percent increase.

These figures were disclosed in the unaudited interim financial statements for the nine months ending in September 2023, which were filed with the Nigerian Exchange Limited.

During this period, Dangote Cement earned N588.24bn from its Pan-African operations, reflecting a substantial 103.89 percent increase over the 2022 revenue figure of N288.51bn.

As expected, the profit from Dangote Cement’s Nigerian operations grew to N856.45bn by the end of September 2023, up from N336.25bn in 2022. However, its Pan-African operations showed a moderation to a loss of N54.35bn, compared to the N127.67bn loss recorded in 2022.

The cement group which has operations in several African countries reported a 28.63 per cent rise in its revenue for the period ended September 2023 to N1.51tn from N1.18tn in September 2022.

With a finance cost of N20.67bn, loss on foreign-denominated transactions coming in at N99.02bn and an income tax expense of N127.34bn, the group’s profit for the period under review stood at N277.55bn, a 30.24 per cent appreciation from N213.10bn recorded in 2022.

For the three-month period or third quarter, Dangote Cement recorded revenue of N563.77bn compared to N369.22 reported in Q3 2022. Its profit for Q3 2023 rose to N98.95bn from N40.99, which is about 141 per cent increase.

Its earnings per share went up by 29.6 per cent at N16.08 and its Net debt stood at N507.7bn.

In the notes accompanying the reports, Dangote Cement said that its net exchange loss on foreign-denominated transactions is due to material devaluation of the Nigerian Naira in June 2023 as the Naira moved from N465 per dollar at the end of May 2023 to close at N756/$ in June 2023 giving rise to a net exchange loss of N116.1bn from third party loans and payables in the Nigerian entities.

Its cash and cash equivalents include restricted cash of N4.77bn for Group and N3.92bn for Company (December 2022 N5.38bn for Group and N4.93 billion for Company) on unclaimed dividend held in a separate bank account, letters of credit for the acquisition of inventories, property, plant and equipment as well as debt service reserve account.

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