Dangote Cement Plc has proposed a total dividend payout of N511.23 billion, representing N30 per share to the shareholders for the financial year ended December 31, 2023.
This is in line with the company’s decision to provide an enhanced return on investments to the shareholders. It is proposing a dividend of N30 per share at a period when many firms are declaring losses, an indication of the resilience of Dangote Cement and the prospects it holds for investors.
On its part, Dangote Sugar Plc said it is targeting an annual production of 1.5 million metric tons of sugar from locally grown sugarcane in the backward Integration Policy of the federal government on Sugar will soon have a significant impact on Sugar production in Nigeria.
A breakdown of the results indicated that Dangote Cement recorded improvement in all performance measurement indicators with group revenue rising by 36.4 percent to N2,208.1 billion while profit after tax was up by 19.2 percent to N455.6 billion. Earnings per share went up by 18.8 percent at N26.47.
Dangote Cement is garnering more market share across the continent with pan-Africa volumes going up by 12.7 percent to 11.3Mt.
Speaking on the results, the group managing director, Dangote Cement, Arvind Pathak said: “this positive full-year outcome is a combination of the strength in the diversity of our operations across Africa and our sustained drive to contain cost amidst an accelerating inflationary environment. The Group achieved double-digit growth in revenue at N2,208.1 billion, while Group EBITDA reached a record high, increasing 25.1 percent to N886.0 billion.”
He added that, “despite the challenging macroeconomic conditions, 2023 was yet another testament to the effectiveness of our diversification strategy. Our diverse operations acted as a cushion, providing resilience to country-specific risks. Pan-African volumes were up 12.7 percent and now account for 41.2 percent of Group volume. Consequently, pan-African revenue increased by a record 123.2 percent to N925.9 billion, while EBITDA surged by over four-fold to N263.7 billion.”
“In response to the heightened inflationary environment, we implemented new and innovative business strategies that helped to drive up revenues, contain costs, and protect margins. These initiatives included fuel mix optimisation, propelling the use of alternative fuels to replace more expensive fossil fuels. We also began the phased transition from diesel power trucks to full Compressed Natural Gas (CNG) trucks,” he pointed out.
Looking ahead, Dangote Cement GMD said, following the commissioning of 0.45Mta grinding plant in Takoradi, it is focusing its ‘export to import’ strategy in West and Central Africa, while concurrently optimising assets in Eastern Africa, adding that, ‘our strategy remains centred on enhancing our value proposition through the production of high-quality cement and delivering sustainable value to our stakeholders.’
Meanwhile, the chief executive officer of Dangote Sugar, Ravindra Singhvi, made this disclosure when presenting details of the company’s 2023 full-year result to the Nigerian Exchange over the weekend.
He said: “in line with the core objective of the National Sugar Master Plan which is for Nigeria to attain self-sufficiency in sugar production, Dangote Sugar is working on enhancing its existing refinery operations in Numan, Adamawa State, as well as developing its greenfield sites at the Nasarawa Sugar Company Project, amongst other sites. The company intends to achieve 1.5MT annually from locally grown sugarcane.”
Speaking on the 2023 year-end financial result, Singhvi said: “Dangote Sugar achieved commendable results despite difficult operating conditions characterised by rising inflation and strained consumer income.
“The company announced a nine per cent increase in its group revenue to N441.5 billion for the year ended December 31, 2023, and a recurring profit after tax, up by 71.5 per cent to N97.9 billion.”
Speaking on the outlook for the company, the CEO said: “our focus is to enhance the effectiveness of our supply chain management processes, leading to cost reduction and improved overall efficiency. Longer-term, the backward integration project, which aims to produce 1.5MT of refined sugar annually from locally produced sugarcane, is expected to alleviate some pressure on costs and our demand for foreign currency.”
Singhvi added that the proposed merger between Dangote Sugar, NASCON, and Dangote Rice Limited, marks a significant milestone in the company’s journey.
According to him, this strategic move reflects our commitment to growth and innovation, positioning us to harness future opportunities in the foods industry. We have applied to the Securities and Exchange Commission for the approval of the merger, and we continue to engage the regulators. We are confident that this proposed merger will drive sustainable long-term success and yield greater returns to all our stakeholders.”
He maintained that the company’s commitment remains steadfast, ensuring the delivery of high-quality products to valued customers as it continues to work towards fulfilling Nigeria’s Sugar Master Plan, positioning Nigeria as a self-reliant player in the global sugar industry.
