Dangote Cement Shareholders To Get 50% Dividend Increase
Under the commitment made by Chairman Aliko Dangote at Dangote Cement’s 2022 Annual General Meeting (AGM) to provide increased returns on investments to shareholders and stakeholders, the company’s Management has proposed a 50% rise in dividend payout to N30 per share for the year ended December 31, 2023.
The proposed dividend increase is contingent upon shareholder approval at the upcoming AGM. Suggesting a dividend of N30 per share during a time when many companies are reporting losses demonstrates Dangote Cement’s resilience and attractiveness to investors.
Results breakdown reveals that Africa’s largest cement producer saw improvements across all performance metrics, with group revenue climbing by 36.4% to ₦2,208.1 billion, Profit after tax (PAT) increasing by 19.2% to ₦455.6 billion, and Earnings per share rising by 18.8% to ₦26.47.
It is worth noting that Dangote Cement has continued to expand its market presence across the continent, with pan-Africa volumes growing by 12.7% to 11.3 Mt.
Speaking on the developments, Group Managing Director, of Dangote Cement, Arvind Pathak said “This positive full-year outcome is a combination of the strength in the diversity of our operations across Africa and our sustained drive to contain cost amidst an accelerating inflationary environment. The Group achieved double-digit growth in revenue at ₦2,208.1 billion, while Group EBITDA reached a record high, increasing 25.1 percent to ₦886.0 billion.
“Despite the challenging macroeconomic conditions, 2023 was yet another testament to the effectiveness of our diversification strategy. Our diverse operations acted as a cushion, providing resilience to country-specific risks. Pan-African volumes were up 12.7 percent and now account for 41.2 percent of Group volume. Consequently, pan-African revenue increased by a record 123.2 percent to ₦925.9 billion, while EBITDA surged by over four-fold to ₦263.7 billion.”
He added, “In response to the heightened inflationary environment, we implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins. These initiatives included fuel mix optimization, propelling the use of alternative fuels to replace more expensive fossil fuels. We also began the phased transition from diesel power trucks to full Compressed Natural Gas (CNG) trucks.
“Looking ahead, following the commissioning of our 0.45Mta grinding plant in Takoradi, we are focusing on our “export to import” strategy in West and Central Africa, while concurrently optimizing assets in Eastern Africa. Our strategy remains centered on enhancing our value proposition through the production of high-quality cement and delivering sustainable value to our stakeholders.”
