Dangote Cement Announces 50% Dividend Increase for Shareholders
Dangote Cement, Africa’s largest cement manufacturer, is set to deliver an enhanced return on investment to its shareholders with a proposed 50% increase in dividend payout to N30 per share. This announcement aligns with Chairman Aliko Dangote’s commitment made at the company’s 2022 Annual General Meeting (AGM) and reflects the resilience and promising prospects of Dangote Cement amidst challenging economic conditions.
The proposed dividend increase, subject to ratification by shareholders at the upcoming AGM, signifies Dangote Cement’s robust performance in the year ended December 31, 2023. The company reported impressive financial results, including a 36.4% rise in group revenue to ₦2,208.1 billion and a 19.2% increase in Profit After Tax (PAT) to ₦455.6 billion. Earnings per share also saw a significant uptick of 18.8% at ₦26.47.
One of the key drivers of Dangote Cement’s success is its expansion across the continent, evidenced by a 12.7% increase in pan-Africa volumes to 11.3Mt. Group Managing Director Arvind Pathak attributed the positive outcome to the diversity of operations and a focus on cost containment amid inflationary pressures.
Pathak highlighted the company’s strategic initiatives, including fuel mix optimization and transitioning to Compressed Natural Gas (CNG) trucks, aimed at driving revenue growth, controlling costs, and safeguarding margins.
Looking ahead, Dangote Cement remains committed to its value proposition of producing high-quality cement and delivering sustainable value to stakeholders. With ongoing optimization of assets in Eastern Africa and a focus on the “export to import” strategy in West and Central Africa, the company is poised for continued growth and value creation.
The proposed dividend increase underscores Dangote Cement’s commitment to rewarding its shareholders and its confidence in the company’s long-term prospects amidst evolving market dynamics.
