Event

Dangote Cement Plc (“The Group”) reported an impressive revenue growth of 101% year-on-year to N817.35bn from N406.72bn in Q1 2023. The improved topline was driven by the combination of higher pricing to match the accelerating inflationary environment and improved volume sales from both markets.

Cost pressures continued in line with the prevalent FX challenges and rising energy cost, driving cost of sales higher by 143% year-on-year to N398.16bn (Q1 2023: N163.67bn). Most of the pressure came from fuel and power (+221% year-on-year), raw materials (+104% year-on-year), and plant maintenance (+138% year-on-year). Nevertheless, gross profit grew by 72%, but gross margin came in weaker at 51% (Q1 2023: 60%).

Outlook

We forecast Nigeria volume to grow by 8% year-on-year to 17.63MT for FY 2024. This is expected to be driven by an uptick in business activities as the broader macroeconomic environment stabilises from the impact of policy reforms. We expect sustained stellar performance in Pan-African operations, as seen in Q1 2024 earnings.

Please follow the link “Dangote Cement Plc Q1 2024 – Volume Rebound in the Nigeria Market Drives Performance” to view the whole report.

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