Dangote Cement declares N455.6bn profit, N30 dividend per share

Africa’s largest cement manufacturer, Dangote Cement has recorded improvement in all performance measurement indicators.

In the financial year ended December 31, 2023, Dangote Cement revenue rose by 36.4 per cent to N2,208.1 billion while profit after tax (PAT) was up by 19.2 per cent to N455.6 billion.

Earnings per share went up by 18.8 per cent at N26.47.

The company’s management has proposed an increase in the dividend payout to the shareholders by 50 per cent, to N30 per share.

The proposed increase in dividend is subject to ratification by the shareholders at the forthcoming Annual General Meeting (AGM).

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Speaking on the results, Group Managing Director, Dangote Cement, Arvind Pathak, 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 per cent to N886.0 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 per cent and now account for 41.2 per cent of Group volume. Consequently, pan-African revenue increased by a record 123.2 per cent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion.”

Pathak 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.”

Dangote Cement is garnering more market share across the continent with pan-Africa volumes going up by 12.7 per cent to 11.3Mt.

The Star