Dangote Cement PLC has announced a 50% increase in its final dividend to N30 for 2023 following strong earnings performance for the year. The company’s profit grew by 19% to N456 billion in 2023.
The proposed increase in dividend is subject to ratification
by the shareholders at the forthcoming AGM.
Proposing a dividend of N30 per share at a period when many
firms are declaring losses is an indication of the resilience of Dangote Cement
and the prospects it holds for investors.
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 N2, 208.1 billion while
Profit after tax (PAT) was up by 19.2 percent to N455.6 billion. Earnings per
share went up by 18.8 percent at N26.47.
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, 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
N2,208.1 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 B263.7 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 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.
“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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