Dangote Cement Increases Dividend by 50% as Earnings Jumps

Dangote Cement Increase Dividend Pay by 50% as Earnings Jumps

Dangote Cement PLC has announced a 50% increase in its final dividend to N30 for 2023 following strong earnings performance for the year. The company’s profit grew by 19% to N456 billion in 2023.

In a regulatory filing, the cement company said it grew revenue by 8% year on year to N2.2 trillion from N1.618 trillion in the comparable period in 2022. It added that the group’s net profit for the year increased by 19% year on year to settle at N456 billion in December 2023, from N382 billion in the year before. 

As a result of the improved bottom line, earnings per share rose by an equivalent rate to settle at N26.47 from N22.27 in 2022. The majority shareholder, Dangote Industries Limited, controls 85.6% of the cement company as of February 26 2024, details from its audited statement showed. In addition, Stanbic IBTC nominees hold 5.61% of the company’s shares outstanding.

MarketForces Africa recorded that Dangote Cement Plc has 17.040 billion outstanding shares in the market and there have been large share repurchases over the years.

Recently, the Company’s shareholders approved the execution of the Share Buy-Back Programme at the Extraordinary General Meeting, which was held on 13th December 2022. This programme, which involves the Company’s buy-back of up to 10% of its issued shares, will be effected in tranches, the company said in its filing note.

In July 2023, the Company completed Tranche I of its second share buy-back programme, repurchasing 0.71% of the outstanding shares. Dangote Cement said the execution of the Share Buy-Back Programme did not have any material impact on the company’s financial position.

For the 2023 financial year, the Directors recommend a dividend of N30.00 per ordinary 50 kobo share versus N20.00 declared in 2022.

“If the shareholders approve this dividend at the Annual General Meeting, dividends will be paid to the shareholders whose names are registered in the Company’s Register of Members at the close of business on the Qualification Date” #Dangote Cement Increases Dividend by 50% as Earnings Jumps Naira Suffers Big, CBN Goes Ballistic Against FX Whales