Dangote Cement says it has increased group revenue by 36.4 per cent to N2.208.1billion from N1,618.3billion, reflecting an increase in prices in line with inflationary realities compared to the same period last year.
Besides, it said the group earnings before interest, tax, depreciation, and amortisation (EBITDA) for the year was increased by 25.1 per cent to N886.1billion at a margin of 40.1 per cent (FY 2022: N708.28, 43.8%).
The company also proposed dividend up 50 per cent at N30.00 per share to the admiration of all shareholders.
These were disclosed during the Dangote Cement PLC Annual General Meeting in Lagos, on Tuesday.
According to the group’s Annual Report and Account 2023, this was in addition to a strong volume growth from pan-Africa, saying the latter revenue was up by 123.2 per cent to N1,925.9 billion, owing to robust demand from the region in addition to price increases.
The sales volumes from the core Nigerian operations decreased by 8.1 per cent to 16.4Metric tonnes in the year under review, according to the report.
The decrease was attributed to the combined impact of the cash crunch and election-related uncertainties in the first quarter.
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Additionally, it said the sharp currency devaluation and heightened transport costs resulting from the subsidy removal in the second quarter, collectively contributed to the decline in sales volume from Nigeria.
Meanwhile, the annual report and account 2023 revealed that pan-African volumes were up by 12.7 per cent to 11.3Mt from around 10Mt in 2022, on the back of improved sales, especially coming from Senegal, Congo, Zambia and Ghana.
“In total, manufacturing costs increased by 51.8 per cent to N1,006.3 billion in 2023 from N662.9 billion in 2022, owing to inflationary pressure. A major driver of the increase was fuel and power consumed which increased by 49.8 per cent to N399.2billion,” the report read.
According to the report, the total selling and administration expenses rose by 31.1 per cent to N491.6 billion in 2023. The rise in administration expenses, it said was driven by the 27.6 per cent increase in haulage expenses due to the significant rise in AGO costs Inflationary pressure, adding that the devaluation of the currencies also drove part of the increase.
In the year under review, the company ‘s interest income decreased by 29.2 per cent to N27.4billion due to reduced interest earning balances.
The company experienced net foreign exchange loss of N164.1billion from its foreign currency obligations, reflecting the devaluation of the Naira from 4611 per dollar at the end of 2022 to N951.8 per dollar at the end of 2023.
“Pan-African EBITDA increased fourfold to N263.7billion , at a record margin of 28.5% (FY 2022: N64.9B; 15.6%), supported by strong volume growth, and a reduction in cash cost in some of our operations in comparison to 2022.
“Operating profit of N734.3billion was 25.3 per cent higher than the N585.9B for 2022 at a margin of 33.3% (FY 2022: 36.2%),” the annual report and account 2023 read.
Welcoming the board and shareholders, the President of Dangote Group, Alhaji Aliko Dangote, said he was delighted to confirm that despite the lingering era of volatility and uncertainty, the company has remained, steadfast in its commitment to delivering value to shareholders, while upholding the highest standards of corporate governance.
During the year under review, he explained that sub-Saharan Africa was hit with sluggish growth, elevated inflation, high borrowing costs, and a cost-of-living crisis.
“In many cases, inflation is still too high borrowing costs elevated, exchange-rate pressures persist, and political instability is an ongoing concern.
“These overarching themes resonated throughout the region during the year. However, individual countries faced distinct and specific risks.
“In February, Nigeria entered its 7th election cycle, resulting in a new government. The buildup to the general elections brought about uncertainties and associated risks, which stalled economic activities.
“Additionally, the sharp currency devaluation further exacerbated operating costs and led to pockets of foreign currency scarcity,” he said
Despite these challenges, Dangote said the Nigerian economy exhibited signs of recovery, buoyed by strong investor optimism following the election outcomes, the peaceful transition of power, and a series of economic reforms implemented by the new government.
“Elsewhere in West Africa, political instability impeded economic integration. In South Africa, growth was hampered primarily due to persistent electricity supply challenges, while in Ghana elevated inflation and fiscal prudence under the IMF program continued to burden domestic demand.
“Undoubtedly, the year presented significant challenges and as we navigated through these challenging times, it is crucial to acknowledge the difficulties we have faced.
“I am hopeful that the coming rebound will be more than just a transitory glimpse of sunshine, but a lasting and sustainable one,” he said, assuring the shareholders.
He said the theme of our Annual Report underscored the “strength in our diversity”, detailing our journey across Africa”
According to him, Dangote Cement exemplified an authentic African growth story driven by the purpose to transform Africa.
“Over the past two decades, we have experienced remarkable growth, strategically venturing into new markets, thereby bolstering our presence throughout the continent. From our humble beginnings in 2007 when we commissioned our 5.3 MTA Obajana cement plant to our current capacity of 52MTAb in 10 African countries.
