Nigeria: Despite Inflation, We Recorded N382.3bn Profit From Cement - Dangote

14 April 2023
Daily Trust (Abuja)
By Abiodun Alade

Chairman of Dangote Cement Plc, Aliko Dangote has pointed out that despite the challenging macroeconomic environment in 2022, the company still made great strides, performed admirably, and remains Africa's largest and leading cement producer.

Speaking at the 14th Annual General Meeting (AGM), of the company in Lagos, Dangote explained that in the face of the unexpected challenges in 2022, the company implemented robust cost reduction strategies to manage the inflationary environment, and thus enhanced its competitiveness while maintaining high levels of product quality and customer service delivery.

According to him: "In addition, we achieved giant strides in transitioning to cleaner energy, with our cost containment initiative propelling the use of Alternative Fuel (AF) to replace more expensive fossil fuels, such as coal and gas. We also increased the use of Compressed Natural Gas (CNG) for our trucks due to the rising diesel cost environment.

"These efforts have helped us reduce our cost base and enhanced our flexibility, enabling the Company to respond more effectively to changes in the market. As a result, we recorded revenue and EBITDA growth of 17.0 per cent and 3.5 per cent from the prior year respectively, albeit under unprecedented inflationary pressure. We also achieved a profit after tax of N382.3 billion, up 4.9 per cent compared to 2021."

Analysing the 2022 year-end result, Dangote explained that the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in history at N1,618.3 billion and N708.2 billion, respectively. The exceptional EBITDA, according to him, was supported by its numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products.

Chairman of the Pragmatic Shareholders Association, Mrs. Bisi Bakare, who alluded to the successful listing of the N300 billion series bond by the company, said: "It is not all companies that could record such a feat given the huge amount involved and the biting economic situation."

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