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2023: Dangote Cement raises shareholders’ dividend by 50 percent, to N30 per share

*Dangote Cement Plc announces the sales from African subsidiaries increased by 12.7 percent, noting the proposed increase in dividend is subject to ratification by the shareholders at the forthcoming Annual General Meeting

Isola Moses | ConsumerConnect

In line with the promise of Alhaji Aliko Dangote, Chairman of Dangote Cement Plc, the company’s 2022 Annual General Meeting (AGM), of enhanced Returns on Investments to all the shareholders and other stakeholders, the company’s Management for the year ended December 31, 2023, has proposed an increase in the dividends for shareholders by 50 percent at N30 per share.

The conglomerate said in a statement that the proposed increase in dividend would be subject to ratification by the shareholders at the forthcoming AGM.

Proposing a dividend of N30 per share at a period when several firms are declaring losses is an indication of the resilience of Dangote Cement and the prospects it holds for investors, the company stated.

A breakdown of the results indicated that Africa’s largest cement manufacturer recorded improvement in all performance measurement indicators with group revenue rising by 36.4 percent to ₦2,208.1 billion while Profit after tax (PAT) was up by 19.2 percent to ₦455.6 billion. Earnings per share went up by 18.8 percent at ₦26.47.

The Group also noted Dangote Cement is garnering more market share across the continent with pan-Africa volumes going up by 12.7 percent to 11.3Mt.

Group Managing Director (GMD), Dangote Cement, Arvind Pathak speaking on the results 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.”

Pathak stated: “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 optimisation, 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.”

He said: “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 optimising 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.”

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