Dangote earns N152bn as cement group increases dividend by 23.5%

Africa’s richest man and Nigerian billionaire, Alhaji Aliko Dangote will receive about N152 billion as dividend from the cement operations of his Dangote Cement Plc in 2017.

The board of Dangote Cement has recommended 23.5 per cent increase in dividend payment to N178.9 billion following considerable improvements in the operations of the group.

Aliko Dangote’s Dangote Industries Limited (DIL) holds more than 80 per cent majority equity stake in Dangote Cement Plc, Nigeria’s most capitalised quoted company.

A breakdown of the dividend recommendation indicated that shareholders will receive a dividend per share of N10.50 for the 2017 business year as against N8.50 paid for the 2016 business year.

The audited report and accounts of Dangote Cement for the year ended December 31, 2017 just released at the Nigerian Stock Exchange (NSE) showed that net profit grew by 43 per cent to N204.25 billion in 2017.

Group turnover rose by 31 per cent from N615.1 billion in 2016 to N805.6 billion in 2017. Profit before tax increased from N180.93 billion in 2016 to N289.59 billion in 2017. Profit after tax rose from N142.86 billion in 2016 to N204.25 billion in 2017. Earnings per share consequently improved to N11.65 in 2017 compared with N8.78 in 2016.

The report showed that while sales from the three plants in Nigeria contributed N552.36 billion to the group’s revenue, the balance of N258.44 billion was accounted for by plants in other African countries. Revenue attributable to Nigeria grew by 29.6 per cent while that from Pan-African operations rose by 32.5 per cent.

Read also: Itakpe-Warri, Lagos-Ibadan rail projects to be completed this year- Amaechi

Though group sales volumes were lower by seven percent due to depressed Nigerian market, Pan-African sales volumes went up by 8.4 per cent to 9.4 metric tonnes with strong volume increases in Senegal, Ethiopia and Cameroon and new capacities of 1.5 metric tonnes in Congo and 0.5 metric tonnes in Sierra Leone.

Acting Group Chief Executive Officer, Dangote Cement Plc, Joe Makoju, described 2017 as a record year for the cement group as the performance during the year demonstrated the robust diversification of its business.

“We expanded our footprint from eight countries to ten with the opening of new facilities in the Republic of Congo and Sierra Leone, while our operations in Cameroon, Senegal and Ethiopia achieved strong sales growth during the year. With total sales volumes of nearly 22 million tonnes, we are by far the leading manufacturer of cement in Sub-Saharan Africa,” Makoju said.

Dangote Cement is Africa’s leading cement producer with nearly 46Mta capacity across Africa. A fully integrated quarry-to-customer producer, with a production capacity of 29.25Mta in its home market, Nigeria. Obajana plant in Kogi state, Nigeria, is the largest in Africa with 13.25Mta of capacity across four lines; Ibese plant in Ogun State has four cement lines with a combined installed capacity of 12Mta and Gboko plant in Benue state has 4Mta.

In addition, Dangote Cement have operations in Cameroon (1.5Mta clinker grinding), Congo (1.5Mta), Ghana (1.5Mta import), Ethiopia (2.5Mta), Senegal (1.5Mta), Sierra Leone (0.5Mta import), South Africa (2.8Mta), Tanzania (3.0Mta), Zambia (1.5Mta).

 

 

RipplesNigeria… without borders, without fears

Click here to join the Ripples Nigeria WhatsApp group for latest updates.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now