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Dangote Cement Plc, the leading cement company majority owned by Africa’s wealthiest individual Aliko Dangote, has announced a remarkable financial performance for the first nine months of its fiscal year 2023, with profits exceeding the $340 million mark.
The cement behemoth, under the leadership of Dangote, disclosed in its recently published nine-month financial report that its profit surged by 30.2 percent, rising from N213.1 billion ($266.04 million) in the corresponding period of 2022 to N277.55 billion ($346.5 million) in the nine months of the current fiscal year.
Profit soars despite slight sales volume dip
This notable profit increase was achieved despite a minor dip in sales volume, with cement sales dropping from 20,797 to 20,288 tonnes. Dangote Cement attributes this surge in revenue to its dominant position in the cement industry and the strong brand reputation of its products, which enabled it to command higher prices per bag of cement.
As a result of this boost in cement prices, the group’s revenue from cement and clinker sales ascended from N1.117 trillion ($1.4 billion) in the first nine months of 2022 to N1.51 trillion ($1.88 billion), propelling its post-tax profit to surpass the $340 million benchmark.
Dangote Cement‘s impressive financial performance translated into substantial growth in its total assets. Under the guidance of Dangote, the group’s assets expanded from N2.615 trillion ($3.27 billion) at the start of the year to N3.344 trillion ($4.17 billion) as of Sept. 30.
Dividend payout to shareholders – including Aliko Dangote – impacts retained earnings.
However, while assets saw substantial growth, retained earnings experienced a decline, decreasing to N898.72 billion ($1.12 billion) from the N969.5 billion ($1.21 billion) recorded at the start of the year. This dip in retained earnings can be attributed to the N340.8 billion ($439.9 million) dividend paid to shareholders at the end of the 2022 fiscal year.
A significant portion of this dividend, amounting to N295 billion ($380.8 million), was awarded to Dangote, reflecting his 86-percent ownership stake in the leading cement manufacturer.
Despite a dip in sales volume, Dangote Cement’s remarkable financial performance and ability to sustain profit growth solidify its position as a top player in the African cement industry, bolstered by the leadership of Aliko Dangote, Africa’s wealthiest man.
* Adjusted to reflect the current going exchange rate
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