Dangote Cement Plc will raise debt through bond issuance to refinance existing debt and support working capital.
The move follows a strong performance in 2024, with revenue reaching ₦2.5 trillion, driven by growth in Nigeria.
Dangote Cement Plc, a leading player in the cement industry, recently secured approval from its Board of Directors to raise medium to long-term debt funding from the domestic capital markets.
This strategic move will assist in refinancing existing debts and supporting the company’s working capital needs.
By the end of September 2024, Dangote Cement reported a remarkable revenue of ₦2.5 trillion, marking a 69.1% increase from ₦1.5 trillion in the same period of 2023.
This surge was largely driven by strong sales in Nigeria, which rose by 9.5%, while Pan-African market sales, however, saw a slight decline of 1.6%.
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Furthermore, group volumes grew by 1.9% year-on-year to 20.7 million tonnes, largely due to a significant recovery in Nigeria.
Additionally, the company’s earnings before interest, taxes, depreciation, amortisation, and impairment (EBITDA) grew by 37.1% to ₦908.69 billion in September 2024, compared to ₦662.76 billion in 2023.
Specifically, the Nigerian operations saw a 37.25% rise in EBITDA to N506.11 billion, while the Pan-African regions saw a 45.35% increase, reaching ₦170.01 billion.
However, despite these gains, after-tax profit grew only slightly by 0.55%, reaching ₦279.09 billion, up from ₦277.5 billion a year earlier.
Moreover, the cost of sales surged by 92%, increasing to ₦1.2 trillion from ₦642 billion in 2023.
Looking ahead, Dangote Cement plans to issue bonds, contingent on favourable market conditions, to strengthen its financial position and continue its growth journey.
