Dangote Cement's unaudited Q1 2024 results showed a 101% y/y growth in Revenue, reaching N817.35 billion compared to N406.72 billion in Q1 2023. Q/q, the company's performance remained robust, with Revenue increasing by 17.9% from Q4 2023's N693.49 billion. This remarkable growth is attributed to a combination of price hikes and increased sales volume. While the exact extent of the price adjustment is not disclosed at the time of this report, it is noted that the volume surge was primarily fuelled by a substantial rebound in the company's Nigerian operations, which saw a 26.1% increase to 4.59 million metric tons from 3.64 million metric tons in Q1 2023. Additionally, Pan African volumes experienced a modest uptick, rising by 3.1% to 2.71 million metric tons from 2.63 million metric tons in the same period. The cumulative effect of these increases resulted in a 12.3% rise in overall group volumes, climbing to 7.04 million metric tons compared to 6.27 million metric tons in Q1 2023.
In Q1 2024, the Cost of Sales (adjusted for depreciation) increased by 152.2% y/y to N353.06bn in Q1 2024 from N140.02bn in Q1 2023. A significant growth in fuel and power consumed (+220.86%) drove the y/y growth in Cost of Sales (adjusted for depreciation). Increases in plant maintenance costs (+137.70%) and materials consumed (103.86%) also contributed to the increase in Cost of Sales. Despite this, Gross Profit climbed by 74.1% y/y to N464.29bn in Q1 2024, up from N266.71bn in Q1 2023. However, Gross Margin fell by 8.8ppts y/y to 56.8% in Q1 2024 from 65.6% in Q1 2023.
