The successful business of Africa’s largest cement maker, Dangote Cement Plc in 2017 enabled the company to pay a whopping dividend of about N180 billion to its shareholders, the largest of such payment since this year’s annual general meetings season.
The dividend paid is 90 percent of the group’s profit and represents N10.5 per share; it is a remarkable increase, being 23.5percent compared N8.5kobo per share the company paid in the 2016 financial year. The board of directors got approval of teeming shareholders to pay the dividend at the company’s 9th annual general meeting in Lagos on Wednesday June 20, 2018.
Despite the low volumes, the group increased revenue by 31percent to N805.6billion from N615.103billion in 2016. Gross profit increased to N454.29billion from N291.28billion in 2016. Profit from operating activities increased to N304.208billion from N182.493billion, profit before tax also increased to NN289.59billion from N180.929billion, while profit for the year increased to N204.248billion from N142.858billion in 2016.
“Our large capacity, financial strength, vertical integration and prudent management have enabled us to enter markets, gain share and withstand competitive and pricing pressures that have wrought more damage on the smaller, less well-funded manufacturers who initiated them,” Aliko Dangote, chairman, Dangote Cement Plc told teeming shareholders.
The shareholders at the meeting received and adopted the company’s audited financial statements for the year ended December 31, 2017, and the reports of the directors, auditors, and audit committee thereon.
Dangote Cement Plc is currently the largest listed entity on the Nigerian Exchange with shares outstanding of 17.040billion units and market capitalisation of N4.072trillion, representing about 30percent of the entire equities market capitalisation. The paid dividend represents 90percent of the company’s net profit in 2017. Dangote Cement Plc share is currently priced at N239. It had reached a 52-week high of N290 from a 52-week low of N194.75.
The shareholders who spoke at the yearly general meeting, also commended the management for the performance and efficient running of the company, amid harsh economic environment.
Boniface Okezie, President of the Progressive Shareholders Association, expressed satisfaction with the state of affairs in the company, especially for abiding by strict corporate governance principles and sustaining its profitability. He however urged the board to do everything within its powers to give bonus to shareholders in the next financial year.
Umar Farouk, another shareholders’ association leader urged the regulators to adequately compensate the management of the Dangote Cement with an award as it has consistently kept faith with its shareholders. I am very happy and our members are upbeat for the future, knowing that it will only get better.”
He expressed optimism on the pan-African plants, especially now that the plants are contributing significantly to the turnover of the company. “It is a statement of fact that we are lucky to be shareholders of this great company. If you see what our subsidiaries across Africa are contributing to the turnover, then you will understand what I am talking about.”
