In line with Chairman Aliko Dangote’s promise at the company’s 2022 Annual General Meeting (AGM) to enhance returns on investments, Dangote Cement Plc’s management has proposed a 50% increase in dividend payout to shareholders, raising it to N30 per share for the year ended December 31, 2023.
This proposed increase is subject to ratification by shareholders at the forthcoming AGM. The move to propose such a dividend at a time when many firms are declaring losses reflects Dangote Cement’s resilience and its prospects for investors.
The company’s performance indicators for the year showed significant improvement, with group revenue rising by 36.4% to N2,208.1 billion, and Profit after Tax (PAT) increasing by 19.2% to N455.6 billion. Earnings per share also rose by 18.8% to N26.47.
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Arvind Pathak, Group Managing Director of Dangote Cement, attributed the positive results to the strength of the company’s operations across Africa and its efforts to contain costs amid an inflationary environment.
Despite the challenging macroeconomic conditions, Dangote Cement achieved double-digit revenue growth, reaching N2,208.1 billion, and a record high Group EBITDA of N886.0 billion, up by 25.1%.
Pathak highlighted the effectiveness of the company’s diversification strategy, with pan-African volumes increasing by 12.7% to 11.3Mt. He emphasized that the company’s diverse operations acted as a cushion, providing resilience to country-specific risks.
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In response to the inflationary environment, Dangote Cement implemented new business strategies such as fuel mix optimization and transitioning from diesel power trucks to full Compressed Natural Gas (CNG) trucks. These initiatives helped drive up revenues, contain costs, and protect margins.