Dangote Cement to Distribute Money to Shareholders Amid Cement Price Hike, Announces Payment Date
- Dangote Cement has announced an increase in the proposed dividend payout to shareholders of the company
- This is in light of a report indicating a 19.2% surge in the company's profit to N455.6 billion for the financial year
- This development comes as the company recently hiked the price of its cement as a result of inflation
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Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
For the year ending December 31, 2023, Dangote Cement Plc has proposed increasing its dividend payout to its shareholders by 50% to N30 per share.
Source: UGC
According to the company's disclosure, the proposed dividend increase is contingent upon the shareholders' approval at their upcoming Annual General Meeting (AGM).
The company stated:
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"By Monday, April 29, 2024, dividends will be paid electronically to shareholders whose names appear in the Register of Members as of Monday, April 15, 2024, and who have completed the edividend registration and mandated the Registrar to pay their dividends directly into their bank accounts."
Dangote cement withstands losses
Dangote Cement's ability to withstand losses and its potential for investment returns is demonstrated by its proposal of an N30 dividend per share when many other companies report losses.
Africa's largest cement manufacturer saw improvements in all performance measurement indicators, according to a breakdown of the results released by Nigeria Exchange Limited, or NGX.
Group revenue increased by 36.4% to N2,208.1 billion, while profit after tax (PAT) increased by 19.2% to N455.6 billion. At N26.47, earnings per share increased by 18.8%.
The financial report showed that due to a 12.7% increase in pan-African volumes to 11.3 million metric tons, Dangote Cement is gaining market dominance throughout the continent.
Speaking about the results, Group Managing Director of Dangote Cement Arvind Pathak stated that the company's strong diversification of operations throughout Africa and ongoing efforts to keep costs under control in the face of rapidly rising inflation are the main contributors to the favourable full-year performance.
He added:
“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% and now account for 41.2% of Group volume.
“Consequently, pan-African revenue increased by a record 123.2% to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion.”
Earlier, there was a significant surge in the retail price of cement in Nigeria. Formerly N5,000 per bag in December 2023, the cost has escalated to N6,500 in different parts of the country.
Legit. ng reported that in just a week, the price of a 50kg bag of cement rose to about N9,500 in many parts of Lagos and around the country, primarily caused by the biting effect of inflation.
Cement price list of Dangote, BUA, others
In a recent development, Legit.ng reported that retailers of significant cement producers in the country have continued to sell the commodity at high prices despite a recent agreement between manufacturers and the federal government of Nigeria.
Dangote, Lafarge, BUA, and other cement producers agreed to sell 50kg bag of cement between N7,000 and N8,000.
This was agreed during a meeting initiated by the minister of works, David Umahi, attended by his counterparts from the Ministry of Industry, Trade, and Investment, Doris Uzoka-Anite, in Abuja on Monday, February 19, 2024.
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Source: Legit.ng
