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2023 AGM: Dangote Cement promises higher returns, value to shareholders, others

L-R: Edward Imoedemhe, Ag. Company Secretary, Dangote Cement Plc; Aliko Dangote, Chairman of Dangote Cement; Arvind Pathak, Group Managing Director/CEO; and Olakunle Alake, Non-Executive Director of Dangote Cement Plc, at the Company's 14th AGM, in Lagos Photo: Dangote Group

*Aliko Dangote, Chairman of Dangote Cement Plc, assures the conglomerate will continue to ensure that ‘we keep our shareholders happy, not only the shareholders but all our other stakeholders’

Isola Moses | ConsumerConnect

Aliko Dangote, Chairman of Dangote Cement Plc, has assured the company’s shareholders and other stakeholders of its Management’s resolve to keep the conglomerate profitable by leveraging strategic innovations for continuous growth of their investments.

Dangote, who gave the assurance at the 14th Annual General Meeting (AGM) of the company Wednesday, April 13, 2023, in Lagos, said the prospects for the cement company have remained bright as the Management would continue to innovate on quality products delivery to millions of its consumers across Africa while touching the lives of the company’s host communities.

The Chairman stated: “We will continue to make sure that we keep our shareholders happy, not only the shareholders but all our other stakeholders….

“Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality.”

The Chairman of Dangote Cement also noted: “We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, guided by our vision of making the region cement and clinker self-sufficient.

“In addition, we aim to deliver higher returns and value to our shareholders.”

He stated that despite the challenging macroeconomic environment in 2022, the company still made great strides, performed admirably, and has remained Africa’s largest and leading cement producer.

He also explained that in view of unexpected challenges 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.

Dangote said: “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.”

The Chairman further noted: “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 percent and 3.5 percent from the prior year respectively, albeit under unprecedented inflationary pressure.

“We also achieved a profit after tax of ₦382.3 billion, up 4.9 percent compared to 2021.”

When analysing the 2022 year-end results, Dangote stated the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortisation (EBITDA) in history at ₦1,618.3 billion and ₦708.2 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.

“Over the last twelve years, volumes have grown by a double-digit compound annual growth rate of 11.2 percent.

“Similarly, EBITDA has grown at a compound annual growth rate of 16.3 percent, over the same period, implying a five-fold increase and revealing a true growth story,” he explained.

The Chairman of Dangote Cement as well said: “Accordingly, we closed the year with a Profit After Tax (PAT) of ₦382.3 billion and an Earning per Share (EPS) of ₦22.27.

“Despite these accomplishments, we are not resting on our laurels. “We recognise that the business environment remains volatile, so we will continue to evolve with the changing times while embracing technological advancement.”

In her remarks on the Company’s Annual Reports, Mrs. Bisi Bakare, Chairman of the Pragmatic Shareholders Association, commended the Management of Dangote Cement for its doggedness during the year under review, for exceeding the shareholders’ expectation in view of the inclement economic weather under which companies operated in the West African country.

Bakare said that Dangote Cement Plc shareholders were happy for the returns on investment (RoI), adding, that meant the company was living up to its billing as the largest in Sub-Saharan Africa.

According to her, if not for the resilience of the management, the company would not be able to post such an impressive performance last year.

Mrs. Bakare alluded to the successful listing of the N300 billion series bond by the company.

She said that the company succeeded largely due to the confidence reposed in the company and its management by the investing public.

Mrs. Bakare noted: “It is not all companies that could record such a feat given the huge amount involved and the biting economic situation.”

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