Dangote Cement (DANGCEM) Q3 2024 earnings summary

Executive summary

• Group revenue rose 69.1% year-over-year to N2,560.6B, driven by strong Nigerian volume growth, improved pricing, and FX translation gains.

• Group EBITDA increased 37.1% to N908.7B, with a margin of 35.5%.

• Profit after tax (PAT) was up 0.6% to N279.1B, despite a significant FX loss of N222.1B.

• Total comprehensive income for the nine months surged to N965.8B, driven by substantial exchange differences on translating net investments in foreign operations.

• Dividend of N502.6B paid to shareholders, with a 50% increase in dividend per share to N30.00.

Financial highlights

• Nigeria revenue up 64.1% to N1,531.5B; Pan-Africa revenue up 85.9% to N1,093.6B.

• Gross profit increased 51.9% to N1,324.3B; gross margin at 51.7%.

• EPS rose 2.9% to N16.55.

• Net cash generated from operating activities for the nine months was N532.3B, up from N460.3B in the prior year.

• Net debt at N1,050.5B; net gearing 48.6%.

Outlook and guidance

• Expansion focus on West and Central Africa, with new plants in Cote d'Ivoire and Ogun State, Nigeria.

• Plans to further boost exports and optimise Eastern African assets.

• Clinker export to Cote d'Ivoire to commence early next year.

• Management continues to focus on operational efficiency and cost control amid inflationary pressures and currency volatility.

• No early adoption of new or amended IFRS standards; consistent accounting policies maintained.