Dangote Cement Plc noticed a marginal enhance in its pre-tax revenue within the first 9 months of 2024 to N406.38 billion as excessive finance and manufacturing prices gulped revenues throughout the interval.
That is in line with the corporate’s unaudited {financial} assertion for the interval between January and September 2024 the place revenues elevated by 69.5% from N1.51 trillion within the first 9 months of 2023 to N2.56 trillion within the interval below overview.
The corporate’s pretax revenue within the interval below overview rose marginally by lower than N2 billion to N406.38 billion from N404.89 billion within the corresponding interval of 2023.
Key Highlights of the end result
Commentary: Regardless of a 70% enhance in revenues, the corporate solely managed to extend revenue after tax by a meagre 0.56% owing to a close to doubling in manufacturing value and greater than 100% enhance in finance value.
The corporate’s materials prices rose from N169.9 billion to N299.83 billion throughout the interval representing an increase 76% between the primary 9 months of 2023 and 2024. The corporate additionally noticed a whopping 109% enhance in vitality consumed- (gasoline and energy) denoting the affect of the present excessive vitality costs throughout the nation.
In response to the excessive inflationary surroundings, the corporate elevated its workers salaries which is clear with the Salaries and associated workers prices doubling from N46.74 billion to N98.87 billion throughout the interval below overview.
Within the interval below overview, the corporate’s finance value was exacerbated by web overseas change losses amounting to N222.07 billion representing a rise of 124% between the primary 9 months of 2023 and the corresponding interval of 2024.
Moreover, curiosity bills within the interval gulped N227.67 billion representing a rise of 152.4% when in comparison with the identical interval of final yr.
It is very important notice that the 70% enhance in income didn’t translate to any vital enhance in gross sales quantity throughout the interval. Between January and September 2024, gross sales quantity stood at 20.67 million tonnes marking a marginal enhance of 1.92% when in comparison with the determine for the primary 9 months of 2023 at 20.28 million tonnes.
This factors to the numerous enhance in cement costs throughout the interval which peaked at round N12,000 per 50kg bag till the intervention of the federal authorities.
