Shareholders of Dangote Cement Plc have applauded the company for increasing their value on investment through robust dividend payout, even as they endorse a dividend of N30 per 50 kobo share for the 2023 financial year.
At the company’s 15th yearly general meeting of the company held in Lagos, the shareholders expressed delight at the N30 dividend declared by the company amid a hash operating environment, stating that many manufacturing firms operating in Nigeria could not declare dividends due to the nation’s prolonged macroeconomic challenges, ranging from uncertainty to foreign exchange shortages, insecurity, rising inflation among others.
Specifically, President of the Trustee Shareholders Association, Mukta Mukta, said the diversified nature of the group has helped to shield the company from macroeconomic risks, the reason they declared dividends in a year when the manufacturing sector is bedeviled with myriads of problems impeding their growth.
He added that enhanced innovativeness deployed by the management has helped them create new ways of doing business to cut costs and increase shareholders’ returns on investment.
Also speaking, the President of the Association for the Advancement of the Rights of Nigerian Shareholders, Dr Faruk Umar said the earnings per share of the cement manufacturing giant has been growing steadily, amid a harsh operating environment, expressing optimism that with the improved performance, the company’s total earnings will exceed N1 trillion in the current financial year.
President of Pragmatic Shareholders Association of Nigeria, Bisi Bakare applauded the management for the smooth running of the affairs of the firm and increasing shareholders’ value on investment.
According to her, the company has been consistent in its dividend policy over the years despite the current reality.
She urged the firm to do everything within its power to sustain its leadership position and stay ahead of trends in the industry against all odds.
Chairman, Dangote Group, Aliko Dangote, said the company has concluded arrangements to ensure that its delivery trucks run on compressed natural gas (CNG) in line with the Federal Government agenda on the adoption of alternative fuel for official vehicles.
According to him, this would serve as a boost to the Federal Government’s quest towards reducing dependence on fossil fuel to enhance the nation’s energy independence and contribute to a more secure energy future.
“We are now going to start using CNG vehicles, especially with the new policy of the Federal Government, launched by the Renewed Hope Agenda by President Bola Tinubu. By the end of next year, all our trucks that are operating in the company will be running on CNG, and that is a whole lot of money that we are going to invest. But we are equal to the task, and we will continue to push and make sure that we continue to make our shareholders happy.”
Dangote said the company’s performance was in fulfillment of the promise made on enhanced Return on Investments (RoI) to shareholders and other stakeholders in Dangote Cement, assuring that the current financial year would be better.
He expressed satisfaction that Dangote Cement achieved double-digit growth in revenue of N2.2 trillion, while Group Earnings before Interest, Taxes, Depreciation and Amortisation (EBITDA) reached a record high of ₦886.1 billion, increasing by 25.1per cent.
“This outstanding EBITDA performance was underpinned by our robust cost control measures and our diverse pan-Africa operations. The latter acted as a cushion, providing resilience to country-specific risks, while the former enhanced our overall profitability. Our pan-Africa operations now contribute 41.2 per cent to the Group’s overall volumes.
