Despite the challenging macroeconomic environment in 2022, Dangote Cement still made great strides and performed admirably as it recorded a profit after tax of N382.3 billion a 4.9 per cent increase compared to the N364.7billion in 2021.
The Chairman of Dangote Cement Plc, Aliko Dangote pointed this out while speaking at the 14th Annual General Meeting (AGM), of the company in Lagos.
Dangote explained that in the face of 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.”