Nigeria’s largest conglomerate, Dangote Group, has spent a staggering N1.008 trillion as cost of sales in 2022 across its three quoted companies on the Nigerian Exchange Limited, representing a significant increase of 26.34% from the previous year.
The information is contained in the audited full-year results of the companies tracked by Nairametrics. The companies under review and mostly owned by Africa’s richest man, Alhaji Aliko Dangote and include Dangote Cement Plc, Dangote Sugar Plc and Nascon Allied Industries Plc.
In specific terms, the All-Share Index surged by 5.32 per cent at the end of trading following the removal of subsidy by the newly inaugurated President of Nigeria, Bola Ahmed Tinubu.
The bullish trade on Tuesday was driven by investor confidence following President Bola Ahmed Tinubu’s announcement of his pro-market policies, evidenced in its proclamation of his commitment to jump-start the economy through measures such as the removal of fuel subsidies and the unification of exchange rates.
This increase in the cost of sales is attributed to inflationary pressures and the depreciation of the Naira. The amount spent also represents 48.47% of the total revenue of N2.08 trillion recorded by the firms during the period under review from N1.69 trillion in 2021 which accounted for 47.22%.
It is important to note that Dangote Group is a major player in the Nigerian economy, with more than 30,000 people in direct employment. As such, the group’s financial performance has a significant impact on various value chains linked to its operations, including suppliers, distributors, and other stakeholders.
Accordingly, the Month-to-Date and Year-to-Date gains advanced to +6.4 per cent and +8.8 per cent, respectively.
Investors displayed strong demand for banking, consumer goods and industrial stocks, anticipating the potential benefits of unified exchange rates, which would alleviate forex and liquidity pressures on their operations.
Big lenders such as Zenith Bank, United Bank for Africa, Access Holdings and Guaranty Trust Bank Holding Company were at the forefront of the upward trend among banking stocks as they appreciated by 10.0 per cent, 9.68 per cent, 8.33 per cent and 6.91 per cent, respectively.Accordingly, the Month-to-Date and Year-to-Date gains advanced to +6.4 per cent and +8.8 per cent, respectively.
Investors displayed strong demand for banking, consumer goods and industrial stocks, anticipating the potential benefits of unified exchange rates, which would alleviate forex and liquidity pressures on their operations.
Big lenders such as Zenith Bank, United Bank for Africa, Access Holdings and Guaranty Trust Bank Holding Company were at the forefront of the upward trend among banking stocks as they appreciated by 10.0 per cent, 9.68 per cent, 8.33 per cent and 6.91 per cent, respectively.
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