Dangote Cement Announces 50% Increase In Dividend Payout At AGM

In his address, Dangote highlighted that thousands of the company’s delivery trucks will transition to running on Compressed Natural Gas (CNG), aligning with the Federal Government’s agenda to adopt alternative fuels. This shift supports the Renewed Hope Agenda by President Bola Tinubu, aiming to reduce dependence on fossil fuels and enhance Nigeria’s energy security.

“We are now going to start using CNG vehicles, especially with the new policy of the Federal Government,” Dangote said. “By the end of next year, all our trucks will be running on CNG. This is a significant investment, but we are committed to it to ensure shareholder satisfaction.”

The Chairman also shared progress on the construction of a new 6 million metric tonnes per annum plant in Itori, Ogun State. Despite logistical challenges at the Apapa Port in Lagos, Dangote assured shareholders that the project remains on schedule.

Reflecting on the company’s financial performance, Dangote reported double-digit revenue growth to ₦2,208.1 billion, with Group EBITDA reaching a record high of ₦886.1 billion, a 25.1% increase. This achievement was attributed to stringent cost control measures and the resilience provided by the company’s diverse operations across Africa.

“Our pan-Africa operations now contribute 41.2% to the Group’s overall volumes,” Dangote noted. “We have also expanded our capacity with new grinding plants in Ghana and Côte d’Ivoire, increasing our total installed capacity to 52.0 million tonnes per annum. The ongoing construction of our Itori plant will further support our export goals.”

The 2023 financial results highlighted improvements across all performance indicators, with group revenue rising by 36.4%, profit after tax (PAT) increasing by 19.2% to ₦455.6 billion, and earnings per share growing by 18.8% to ₦26.47. The company also recorded a 12.7% increase in pan-Africa volumes to 11.3 million tonnes.

Arvind Pathak, Group Managing Director of Dangote Cement Plc, praised the company’s strategic diversification, which bolstered resilience against macroeconomic challenges. “Our pan-African revenue increased by a record 123.2% to ₦925.9 billion, while EBITDA surged over four-fold to ₦263.7 billion,” Pathak said. He highlighted the company’s innovative strategies, including fuel mix optimization and the transition to CNG trucks, as pivotal to maintaining profitability amidst inflationary pressures.

Shareholders expressed their appreciation for the company’s impressive performance and generous dividend payout. Mrs. Bisi Bakare, Chairperson of the Pragmatic Shareholders Association, commended the management for achieving substantial dividends despite the tough economic climate. Dr. Faruk Umar, President of the Association for the Advancement of Rights of Nigerian Shareholders, echoed this sentiment, praising Dangote Cement’s profitability and the management’s adept navigation of economic challenges.

Both leaders expressed optimism about future dividends and the anticipated positive impact of the Dangote Refinery on the prices of petroleum products, including Premium Motor Spirit.

By Augustine Idoje