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Home Business H1 2024: Dangote Cement Reports 85% Pre-tax Profit, Struggles With +118% YoY Increase In Production Costs

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H1 2024: Dangote Cement Reports 85% Pre-tax Profit, Struggles With +118% YoY Increase In Production Costs

Confidence UbaniJuly 26, 20241 Mins read286

Dangote Cement Plc has announced a pre-tax profit of N292.9 billion for the first half of 2024. This marks a 22 per cent increase from N239.9 billion in the same period last year. The company’s revenue soared to N1.76 trillion, an impressive 85 per cent growth compared to N950.8 billion in H1 2023.

However, rising production costs have impacted the company’s profit margins. The production cost of sales jumped 118 per cent year-on-year to N833.3 billion, up from N383.1 billion. The production cost of sales is the total cost Dangote Cement incurred in producing and selling its products. This includes raw materials, labour, energy, and other direct costs associated with cement manufacturing. Operating expenses also surged by 103 per cent to N403.2 billion, driven by inflation and increased costs for materials and power.

Dangote Cement posted a net profit of N189.9 billion, a slight increase of six per cent from N178.6 billion last year. This was, however, stunted by a loss of N201.3 billion due to changes in foreign exchange rates.

The company produced 13.792 million tonnes of cement, a four per cent increase from 13.249 million in H1 2023. Additionally, Dangote Cement earned N807 billion from operations outside Nigeria, a 140 per cent rise from N336.4 billion last year, although it faced a net loss of N68.5 billion from these entities. The company also reported a net foreign exchange loss of N201.3 billion from its operations in Nigeria. This loss is reportedly 77 per cent higher than the N113.6 billion loss it experienced in the first half of 2023. Despite these challenges, the company will pay N103 billion in taxes, up from N61.2 billion in H1 2023.