Dangote Cement Plc, has continued to achieve excellent financial performance and growth over the last decade.
The Company volumes have grown by a compound annual rate of 11 per cent over the last 12 years, while its EBITDA has increased by a compound annual growth rate of 16 per cent over the same period. The company has also created additional value for its shareholders through share price appreciation, consistent dividend payment and shares repurchase.
Chairman of Dangote Cement Plc, Aliko Dangote guaranteed shareholders and other stakeholders of the company’s management’s resolve to keep the company profitable by leveraging on strategic innovations for the continuous growth of their investments.
He stated that “at Dangote Cement, we are unwavering in our commitment to building an inclusive and sustainable business for all stakeholders across the value chain.”
Dangote stated this at the 14th Annual General Meeting (AGM) of the company held in Lagos. According to him, the prospects for the cement company remain bright as the management will continue to innovate on quality products delivery to millions of its customers across Africa while touching the lives of its host communities.
He stated, “we will continue to make sure that we keep our shareholders happy, not only the shareholders but all our other stakeholders. Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality.
“We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, guided by our vision of making the region cement and clinker self-sufficient. In addition, we aim to deliver higher returns and value to our shareholders.”
The chairman pointed out that despite the challenging macroeconomic environment in 2022, the company still made great strides, performed admirably, and remains Africa’s largest and leading cement producer.
Dangote explained that in the face of the unexpected challenges in 2022, the company implemented robust cost reduction strategies to manage the inflationary environment, and thus enhanced its competitiveness while maintaining high levels of product quality and customer service delivery.
According to him, in addition, we achieved giant strides in transitioning to cleaner energy, with our cost containment initiative propelling the use of Alternative Fuel (AF) to replace more expensive fossil fuels, such as coal and gas. We also increased the use of Compressed Natural Gas (CNG) for our trucks due to the rising diesel cost environment.
“These efforts have helped us reduce our cost base and enhanced our flexibility, enabling the Company to respond more effectively to changes in the market. As a result, we recorded revenue and EBITDA growth of 17.0 per cent and 3.5 per cent from the prior year respectively, albeit under unprecedented inflationary pressure. We also achieved a profit after tax of N382.3 billion, up 4.9 per cent compared to 2021.”
Analysing the 2022 year-end result, Dangote explained that the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in history at N1,618.3 billion and N708.2 billion, respectively. The exceptional EBITDA, according to him, was supported by its numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products.
He explained that, “over the last twelve years, volumes have grown by a double-digit compound annual growth rate of 11.2 per cent. Similarly, EBITDA has grown at a compound annual growth rate of 16.3 per cent, over the same period, implying a five-fold increase and revealing a true growth story.
“Accordingly, we closed the year with a profit after tax of N382.3 billion and an Earning per Share (EPS) of N22.27. Despite these accomplishments, we are not resting on our laurels. We recognise that the business environment remains volatile, so we will continue to evolve with the changing times while embracing technological advancement.”
The shareholders of the company applauded the management of Dangote Cement for the 2022 performance despite a tough macroeconomic environment. They also approved a total dividend of N340.810 billion or N20 per share for the year ended December 31, 2022. This reinforces the Company’s commitment to maximising shareholder value. Also, the robust dividend pay-out, in addition to the share buyback completed in January 2022, reaffirms the Company commitment to creating value and distributing wealth to shareholders efficiently.
Speaking on the Company’s annual reports, chairman of the Pragmatic Shareholders Association, Mrs. Bisi Bakare commended the management of Dangote Cement for its doggedness during the year under review for still being able to exceed the shareholders’ expectation in view of the inclement economic weather under which companies operated in the country.
She explained that the shareholders were happy for the returns, pointing out that it only means that the company was living up to its billing as the largest in Sub-Saharan Africa, adding that if not for the resilience of the management, the company would not be able to post such an impressive performance in 2022.
Bakare alluded to the successful listing of the N300 billion series bond by the Company, saying the company succeeded largely due to the confidence reposed in the company and its management by the investing public.
“It is not all companies that could record such a feat given the huge amount involved and the biting economic situation,” she stated.
Dangote Cement is Africa’s largest cement producer, with a presence across 10 African countries, meeting the demand of millions of customers on the continent. The diversity of its operations in key markets act as a hedge, while positioning the business to tap into the numerous opportunities in Africa.
Over the last two decades, Dangote Cement has evolved its operations ensuring relevance with the changing market dynamics, customer demand and advancing technologies. Its years of proven track record in quality cement production, positions the company as the bellwether in the cement sector in Africa.