Dangote Cement Plc · NSENG:DANGCEM
Dangote Cement — Q1 2024 Earnings Presentation
20 slides from Dangote Cement's earnings presentation, Apr 30, 2024
Slide 1: Q1 2024 results
Q1 2024 results UNAUDITED RESULTS FOR THREE MONTHS ENDED 31st MARCH 2024 30th April 2024 @dangotecement www.dangotecement.com
Slide 2: A Global leader, Proudly African
A Global leader, Proudly African Dangote Cement is sub-Saharan Africa’s largest and leading cement company, with operations in 10 African countries. We are resolute in transforming Africa, while creating sustainable value for all our stakeholders. 8 1 2 10 9 Integrated 7 52Mta Grinding 6 Our vision
Slide 3: SSA – Macroeconomic environment
6 SSA – Macroeconomic environment 5 • Sub-Saharan Africa (SSA) is projected to grow at a faster pace of 3.8% in 2024, up Currency depreciation against the dollar YTD in March from the growth of 3.4% in 2023. However, the region is still contending with challenges including escalating inflation, curr
Slide 4: Domestic macroeconomic environment
Domestic macroeconomic environment Real GDP Growth (%) Interest Rate (%) Movement in Oil Prices ($) 30 26.7 4.0% 3.4% 3.3% MPR 1-yr Tbills Interbank 120 3.1% 25 24.75 2.7% 3.0% 2.3% 20 89.3 1.9% 100 2.0% 15 20.2 0.8% 10 1.0% 80 5 0.0% 0 -1.0% 2017 2018 2019 2020 2012 2022 2023 2024F 60 Mar-23 Mar-24
Slide 5: Impressive performance amidst headwinds
Impressive performance amidst headwinds FINANCIAL OPERATIONAL SUSTAINABILITY SDG Alignment 27% female Board Group revenue up 101% Group volumes up 12.3% to representation to ₦817.4B 7.0Mt Diverse Board with 6 different nationalities Published 2023 combined Strong rebound in Nigeria Group EBITDA up 6
Slide 6: Q1 2024: Strong rebound in Nigeria volumes, up 26.1%
Q1 2024: Strong rebound in Nigeria volumes, up 26.1% Three months ended 31st March Q1 2024 Q1 2023 Change Sales volumes* ‘000t ‘000t % Financial Nigeria volumes 4,594 3,642 26.1% • Group revenues up 101%, due to strong double-digit growth in Nigeria and enhanced sales performance from pan-Africa Pan
Slide 7: Group financial overview
Group financial overview Income Statement Q1 2024 Q1 2023 % change ₦m ₦m Revenue 817,350 406,722 101.0% Cost of sales (398,162) (163,671) 143.3% Gross profit 419,188 243,051 72.5% Gross margin 51.3% 59.8% (8.5pp) EBITDA 309,477 185,708 66.6% EBITDA margin 37.9% 45.7% (-7.8pp) EBIT 255,295 156,867 62
Slide 8: Group financial overview (cont’d)
Group financial overview (cont’d) Balance Sheet As at 31/3/24 As at 31/12/23 ₦m ₦m Property, plant and equipment 3,011,833 2,383,528 Other non-current assets 170,522 133,827 Intangible Assets 17,172 12,356 Current Assets 1,304,928 961,917 Cash and Cash Equivalents 625,190 447,097 Total Assets 5,129,
Slide 9: Nigeria – Uptick in economic activities drive volume rebound
Nigeria – Uptick in economic activities drive volume rebound • Strong rebound in volumes due to increased economic activities and a resumption of construction projects in comparison to last year 453 225 • Further depreciation of the Naira at the official market from ₦951.8/$ 197 at the year end of 2
Slide 10: Pan-Africa – Strong performance across board
Pan-Africa – Strong performance across board EBITDA ₦’B • Volumes up 3.1% to 2.7Mt, driven by healthy volume growth from Congo and Zambia 106.0 99.9 • Pan-African volume accounts for 38.5% of Group volume, underscoring benefits from our 96.0 diversification strategy 86.0 Strong pan-Africa EBITDA • R
Slide 11: Country updates
Country updates CAMEROON CONGO ETHIOPIA • Estimated 1.0Mt total market • Estimated market sales of • Estimated 1.9Mt total market sales in Q1 2024 187Kt in Q1 2024 sales in Q1 2024 • DCP Cameroon volume was • Clinker exports to DRC and • DCP sales of 590.6Kt in Q1 relatively flat at 354.2Kt in Q1 Ca
Slide 12: Country updates
Country updates GHANA SENEGAL SIERRA LEONE • Estimated 2.0Mt total • Estimated total market sales • Estimated market sales of market sales in Q1 2024 of 2.6Mt in Q1 2024. 223.7Kt in Q1 2024 • DCP Ghana sold 123.4Kt of • Election uncertainties stalled • Pockets of stock shortages cement in Q1 2024, u
Slide 13: Country updates
Country updates SOUTH AFRICA TANZANIA ZAMBIA • Economic activities in South • Estimated 1.5Mt total market • Estimated 708.4Kt total Africa were subdued in the first sales for Q1 2024 market sales for Q1 2024 quarter, due to a slowdown in construction activities in the • DCP sold 361.1Kt in Q1 2024,
Slide 14: Sustainability
Sustainability Investor Presentation
Slide 15: Strong Board and Governance Framework
Strong Board and Governance Framework Board of Directors (includes five Independent Directors) Diverse Board • 27% Female Board Members (gender diversity) Aliko Dangote Devakumar Edwin Arvind Pathak Emmanuel Ikazoboh * • 6 Nationalities Olakunle Alake Philip Mathew Cherie Blair* Viswanathan Shankar
Slide 16: Sustainability & Governance – The Dangote Way
Sustainability & Governance – The Dangote Way Our 7 Sustainability Pillars our embedded in our culture and guide our approach to building a sustainable business. We released our 2023 combined Annual Report and Sustainability Report with ESG data presented as per Global Reporting Initiative (GRI) ref
Slide 17: ESG is at the Heart of Our Operation (Q1 2024 highlights)
ESG is at the Heart of Our Operation (Q1 2024 highlights) Environmental Social Governance • Reviewed and implemented new governance • Alternative Fuel Thermal Substitution Rate (TSR) at • N956 million spent on social intervention activities policies in line with best practices 10.7% in Q1 2024 versu
Slide 18: Social Performance
Social Performance Customer Service Week Sustainability Week Theme: “Sustainable Production and Consumption – Dangote Cement Long Service Award and Graduate Trainee Graduation The Dangote Way” ₦ 956mn spent on CSR in Q1 2024, up by 104.3% Dangote Cement sustainable living fair Investor Presentation
Slide 19: Outstanding Financial Performance
Outstanding Financial Performance 2023 Group revenue up Group Revenue (N’B) Group EBITDA (N’B) 2400 2208.1 17.0% at 1000 886.1 900 ₦2,208.1B 2000 800 1600 700 600 1200 500 400 800 2023 Group EBITDA up 300 400 241.4 200 134.0 25.1% at 100 ₦886.1B 0 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 20: For further information contact
For further information contact: Temi Aduroja Head of Investor Relations Dangote Cement Plc ir@dangote.com @dangotecement www.dangotecement.com