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Dangote Cement rewards shareholders with N119bn dividend

By BusinessNews Staff on March 28, 2014

Leading cement manufacturing firm, Dangote Cement Plc, Wednesday unveiled a record financial performance for the year ended December 31, 2013. The company reported a revenue of N386.2 billion, up 29.4 per cent from N298 billion in 2012. Profit before tax stood at N191 billion compared with 135 billion, while profit after tax rose to N201 billion due to a tax credit of N10 billion.

Consequently, the company recommended a dividend a N19 billion (N7.0 per ordinary share), showing an increase of 133 per cent as against N3 paid in 2012. The dividend translates to a yield of 3.0 per cent.

The Group Chief Executive, Dangote Cement, Mr. Devakumar Edwin, expressed satisfaction at the performance of the company saying the impressive run was as a result strategies deployed of sound management of the prevailing economic situation.

“Dangote Cement made excellent progress in 2013. As the Nigerian cement market grew by a strong 15.6 per cent we managed even better growth of 28.2 per cent, with our revenues increasing by 29.4 per cent to N386.2 billion. Our direct-delivery strategy is proving very popular with customers and I am pleased to report that direct-to-customer deliveries now account for more than half of our sales,” he said.

Edwin noted that the company increased its margins despite continuing disruption to its gas supply and believe that the gas distribution infrastructure will be more robust in 2014.

He added that the company is looking at ways to diversify its fuel supplies to mitigate the impact of any future disruption and reduce the cost of using alternative fuels.

“Our financial strength has allowed us to increase our dividend by 133 per cent to N7.0 per share and the coming year will see our new factories opening across Africa as we begin to deliver on our promise to become Africa’s leading cement producer, generating strong and sustainable returns for our shareholders,” he said.

Edwin stated that Dangote Cement would be investing several billion dollars to build manufacturing plants and import terminals across Africa. According to him, current plans are for integrated or grinding plants in Cameroon, Ethiopia, Republic of Congo, Liberia, Senegal, South Africa, Tanzania, Kenya and Zambia, as well as Ivory Coast and Ghana, and import/packing facilities in Ghana and Sierra Leone.

[This Day]

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