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Dangote Cement explains impressive results

By BusinessNews Staff on May 6, 2014

The Group Managing Director of Dangote Cement Plc (DCP), Mr. Devakumar Edwin, last Friday attributed the impressive results of the company in 2013 to various strategies the management of the company adopted.

DCP recorded a turnover of N386.2 billion, up 29.4 per cent from N298 billion in 2012. Profit before tax stood at N191 billion compared with N135 billion, while profit after tax rose to N201 billion.

As a result, the board recommended a dividend a N119 billion (N7.0 per ordinary share), showing an increase of 133 per cent as against N3 paid in 2012. The dividend was approved by shareholders of the company at the Annual General Meeting (AGM) in Lagos.

Speaking at the AGM, Edwin said the good strategies adopted by the management, including the direct-delivery strategy, led to the impressive 2013 performance.

He said: “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 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 financial strength has allowed the company to increase the dividend by 133 per cent to N7.0 per share.

“In 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.

In his address, Chairman of DCP, Aliko Dangote assured the shareholders that the company would intensify direct-to-consumer deliveries as a means of stabilising the price of cement in the country.

According to him, the company sold 13.3 million tonnes of cement in Nigeria within the financial year, insisting that the company had not increased the price of cement.

“We have not increased the prices of our product. We have embarked on an initiative to improve the standard of cement sold in Nigeria and our belief is that 42.5 strength cement, is the most appropriate for general use now.

“We have recently introduced 52.5 strength cement, which is appropriate for heavy load-bearing structures such as bridges and flyovers and we hope to increase the market share in the short-term by increasing the level of direct-to-customers deliveries and competing on product superiority,” Dangote explained.

[This Day]

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