Dangote Cement recorded a net profit of N503.2 billion for the 2024 financial year, reflecting a 10% increase from the N455.6 billion reported in 2023.
Strong Revenue Growth and Profit Margins
The company generated N3.58 trillion in revenue for the year, marking a substantial 62% rise from N2.21 trillion in 2023. Its gross profit stood at N1.9 trillion, maintaining a 54% gross margin, identical to the previous year when gross profit reached N1.2 trillion.
Operating Profit and Financial Challenges
Operating profit climbed to N1.15 trillion, reflecting a 57% surge from the N734.3 billion recorded in 2023. However, financial costs remained high, with interest expenses amounting to N448.1 billion. Additionally, foreign exchange losses from its international operations totaled N249 billion, bringing total interest expenses for the year to N700 billion.
Pre-Tax and Net Profit Performance
Pre-tax profit rose to N732.5 billion, a notable increase from N553.1 billion in 2023. After deducting a tax expense of N229.3 billion, Dangote Cement ended the year with a net profit of N503.2 billion.
Nigerian Market Performance vs. Pan-African Operations
The company’s Nigerian operations were highly profitable, generating a net profit of N1.18 trillion. In contrast, its operations in other African markets faced challenges, reporting a net loss of N24.4 billion.
Sales and Exports Overview
Revenue from cement sales in Nigeria reached N2.06 trillion in 2024, with exports contributing an additional N128.3 billion. Meanwhile, its pan-African operations recorded a revenue of N1.48 trillion. Dangote Cement maintains a presence in multiple countries, including South Africa, Ethiopia, Zambia, Senegal, DR Congo, Kenya, Madagascar, Nepal, Zimbabwe, and Congo.
Asset Growth and Financial Position
Total assets grew significantly to N6.4 trillion by the end of 2024, representing a 63% increase from N3.94 trillion in 2023. Net assets also saw an improvement, rising to N2.18 trillion from N1.73 trillion in the previous year.
Cash Flow and Market Valuation
Despite strong revenue growth, the company’s cash reserves declined by 70% in 2024. Net cash balance stood at N131.7 billion, a sharp drop from N432.2 billion in 2023. However, operating cash flow improved, increasing to N821.1 billion from N678.8 billion in the prior year.
Earnings per share climbed to N29.74. At a share price of N480, Dangote Cement’s stock maintains a price-to-earnings ratio of 16.13x, positioning it as one of the most affordable stocks in the industrial goods sector.
