Prime Business AfricaDangote Cement has reported a significant increase in revenue, with a 62.15% jump to N3.58 trillion in 2024. However, the company’s production costs have also risen sharply, consuming 45.6% of its revenue.
Despite this, Dangote Cement’s gross profit and profit after tax have still managed to increase, albeit at a slower pace.
Join our WhatsApp ChannelAccording to an analysis of the company’s consolidated and separate financial statements for the year ending December 31, 2024, Dangote Cement’s cost of sales or production increased faster than the manufacturer’s turnover.
The cost of production increased by 63.53 percent to N1.64 trillion last year, gulping 45.6 percent of the company’s revenue, from the N1 trillion spent on production the previous year, which consumed 45.57 percent of Dangote Cement’s revenue.
Despite the rising cost of sales, the company managed to increase its gross profit by 60.99 percent to N1.93 trillion during the review period, from N1.20 trillion reported by the cement manufacturer in 2023.
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A closer look into the company’s financials showed Dangote Cement’s profit after tax jumped 32.44 percent from N553.10 billion to N732.53 billion within 12 months.
However, after paying N229.29 billion in tax last year, which is N131.76 billion or 135.11 percent higher than the N97.52 billion tax paid in 2023, Dangote Cement was left with N503.24 billion profit after tax in 2024.
The PAT increased by merely 10.46 percent, according to an analysis by Prime Business Africa, considering that the company recorded N455.58 billion net income the previous year.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
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