Dangote has continued to attract substantial foreign exchange into the country through his pan-African operations, as indicated by the half-year results for Dangote Cement. The revenue from Pan-African operations increased by 139.9%, growing to N807.1 billion compared to N336.4 billion reported in the corresponding period of 2023.
The cement plant also reported a 10.9% increase in the Nigerian market, which rose from 8.0Mt to 9.0Mt in the half year ended June 30, 2024. According to the 2024 half-year results, group volumes rose by 3.8% to 13.9Mt. Group revenue was up by 85%, reaching N1,760 billion compared to N950 billion in the corresponding period in 2023, driven by a 60% growth in Nigeria, which rose to N991 billion from N618 billion.
As part of continuous efforts to promote a cleaner environment, Dangote Cement commissioned 11 of the 17 Alternative Fuel Projects across the Group and also took delivery of 300 full CNG trucks for its Nigerian business. It achieved a thermal substitution rate estimated at 10.5% for H1 2024 compared to 7.8% in H1 2023.
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Chief Executive Officer of Dangote Cement, Arvind Pathak, remarked, “We effectively navigated macroeconomic headwinds to deliver positive results in the first half of the year. Group volumes were up 3.8%, with our Nigeria operations achieving double-digit volume growth of 10.9%. This growth was driven by improved efficiency across our operations and supported by increased market activity levels compared to the election year and cash crunch in 2023.
“Despite the challenges of elevated inflation, high borrowing costs, and a further weakening of the currency in the first six months of the year, our business demonstrated strong resilience. This was due to our rigorous focus on cost minimisation and our diversified business model.”
He added, “Group revenue and EBITDA rose 85.1% and 50.3% to ₦1,760.1 billion and ₦666.2 billion, respectively. Our Profit After Tax (PAT) reached ₦189.9 billion, marking a 6.3% increase. I am pleased with the performance of our business, as key financial indicators are showing positive trends.
By leveraging our robust export-to-import strategy, Dangote Cement completed fourteen shipments of clinker from Nigeria to Ghana and Cameroon. This effort resulted in a 55.2% surge in our Nigerian exports, underscoring our commitment to fostering African self-sufficiency.
Looking ahead, we remain bullish about the growth prospect of the African region, evident in our increased capital investments. We continue to prioritise innovation, cleaner energy transition, and cost leadership towards achieving our vision of transforming Africa and building a sustainable future.”