Stock price of Dangote Cement appreciates by N1.36trn in one-week
The stock price of Dangote Cement Plc has appreciated by N1.36 trillion in one week and impacted on the overall market capitalization that crossed the N68 trillion on Thursday.
On Thursday last week, the stock price of Dangote Cement that was trading at N394.00 per share has gained 20.3 per cent or N80.1 per share to close on Thursday at N474.10 per share.
Currently at N8.08 trillion by market capitalisation as of February 13, 2025, Dangote Cement has contributed 11.86 per cent out of the overall N68.12 trillion market capitalization of all listed stocks on the Nigerian Exchange Limited (NGX).
Dangote Cement in its Year-till-Date (YtD) opened for trading in 2025 at N478.80 per share has depreciated by N4.70 per share.
The cement maker has not announced its 2024 financial statement on the Exchange as capital market analysts foresee impressive earnings and robust dividend payout to shareholders.
The multinational cement manufacturer, has reported N2.5 trillion in revenue for the nine months of 2024, largely fueled by increased local market sales.
According to the cement maker’s result, its revenue grew by 69.1 per cent from N1.5 trillion reported in the same period of 2023 with Nigeria sales volume rising by 9.5 per cent and Pan-Africa market sales declining by 1.6 per cent.
“Our financial results for the nine months demonstrate superior performance across key metrics, as we diligently execute our strategic priorities for the year. Group volumes grew by 1.9 per cent year-on-year to 20.7Mt, largely due to a significant rebound in Nigeria,” said Arvind Pathak, chief executive officer, Dangote Cement.
He noted that this growth was supported by promotional activities and enhanced route-to-market solutions, which helped mitigate the impact of adverse weather conditions.
Dangote Cement’s earnings before interest, taxes, depreciation, amortisation & impairment (EBITDA) spiked by 37.10 per cent to N908.69 billion as at September 2024 from N662.76 billion as of September 2023.
A breakdown of figures shows Dangote Nigeria’s EBITDA rose by 37.25 percent to N506.11 billion while the Pan-African regions were up 45.35 percent to N170.01 billion.
After-tax profit during the period increased by a single digit 0.55 per cent to N279.09 billion from N277.5 billion.
A further analysis of the company’s statement disclosed that in the first nine months, the cost of sales increased by 92 per cent, rising to N1.2 trillion from N642 billion in the same period of 2023.
This was mainly driven by elevated energy costs (109.4 per cent) and haulage expenses (91.2 percent) due to rising energy prices.
Analysts at CardinalStone Research said, “This led to gross margin compression by 5.9 ppts to 51.7 percent and EBIT margin contraction by 7.7 ppts to 29.3 per cent. However, management noted some progress made in its migration to cost-saving alternatives, with 11 of 17 alternative fuel projects commissioned and the arrival of 1,500 CNG trucks announced.”
