2023: Dangote Cement Soars: Dividend Up 50%, Profits Rise
…sales from African subsidiaries rose by 12.7%
By Patience Ikpeme
Dangote Cement has announced plans to increase the dividend payout to its shareholders by 50%.
The proposed increase in dividend, subject to ratification at the upcoming AGM, would see the dividend per share rise to N30.
At the company’s Annual General Meeting (AGM) held in 2022, Aliko Dangote Chairman of the conglomerate had promised enhanced returns on investments for shareholders and stakeholders.
This move by Dangote Cement is significant, especially at a time when many companies are reporting losses. It showcases the resilience of the company and the promising prospects it holds for investors.
The financial results for the year ending December 31, 2023, indicate a positive performance by Dangote Cement. Group revenue rose by 36.4% to ₦2,208.1 billion, while profit after tax (PAT) increased by 19.2% to ₦455.6 billion. Earnings per share also rose by 18.8% to ₦26.47.
Dangote Cement has continued to expand its market share across Africa, with a 12.7% increase in pan-Africa volumes, reaching 11.3 million tonnes.
Group Managing Director of Dangote Cement, Arvind Pathak, expressed satisfaction with the company’s performance. He attributed the positive outcome to the diversity of operations across Africa and a focus on cost containment in the face of an inflationary environment. Pathak highlighted the double-digit growth in revenue and the record-high EBITDA of ₦886.0 billion, which increased by 25.1%.
Despite challenging macroeconomic conditions, Dangote Cement’s diversified operations acted as a buffer, providing resilience against country-specific risks. Pan-African volumes accounted for 41.2% of the group’s volume, leading to a record 123.2% increase in pan-African revenue to ₦925.9 billion. EBITDA also surged to ₦263.7 billion, more than quadrupling in value.
Pathak emphasized the company’s response to the inflationary environment, implementing new and innovative strategies to drive up revenues, control costs, and protect margins. These initiatives included optimizing the fuel mix and transitioning from diesel power trucks to Compressed Natural Gas (CNG) trucks.
Looking to the future, Dangote Cement plans to focus on its “export to import” strategy in West and Central Africa, while also optimizing assets in Eastern Africa. The company aims to enhance its value proposition through the production of high-quality cement and deliver sustainable value to stakeholders.
Overall, the increased dividend payout and positive financial results indicate a strong performance by Dangote Cement, boosting investor confidence and demonstrating the company’s commitment to generating returns for its shareholders and stakeholders.
