Shareholders of the leading cement manufacturer, Dangote Cement Plc, have approved a dividend payment of N272.6 billion for the financial year ended December 31st, 2018. This translates to a dividend of N16 per every 50 kobo share held by the shareholders of the company.
The announcement was made by the company’s Chairman, Alhaji Aliko Dangote, who spoke during the company’s 10th Annual General Meeting (AGM) which held in Lagos on Monday.
Exciting news for shareholders: Speaking on behalf of the shareholders, Sunny Nwosu, the founder of Independent Shareholders Association of Nigeria (ISAN) applauded the company for the impressive dividend declaration for 2018.
It should be noted that the N272.6 billion approved dividend represents a 52.4% increase over the N178.9 billion declared in 2017 at N10.50 per share.
2018 was good for the company: The Chairman further disclosed that 2018 was the most successful year in the company’s history. This apparently explains the company’s commendable dividend declaration, itself the highest the company has ever declared.
Specifically, Dangote cited the 7.4% leap in the group cement sales as the principal factor that informed increase in the proposed dividend. The group cement sales rose to 23.5 million tonnes with a corresponding rise in revenue to N901.2 billion.
Details of Expansion Plans: According to Dangote, the company’s operations would soon be extended to a minimum of 18 African countries. Similarly, the company’s flagship plant at Obajana, Kogi State would have its production capacity increased to 16 million metric tonnes. This will put the plant in the league of the biggest cement manufacturing plants in the world.
In the meantime, two new export terminals in Lagos and Port Harcourt are expected to earn the company and (by extension Nigeria) about $700 million in Foreign Exchange when completed.
“We have a lot of ongoing projects aimed at increasing capacity and by next year, we will not only export one million tonnes as we normally do now, we will be servicing both the domestic and other African countries from Nigeria. We will have a capacity of about eight million tonnes to export and that will generate foreign exchange of about $700m into the country.
“Later in 2019, we will open export facilities in Lagos and Port Harcourt that will enable us to export clinker, initially to our grinding plants we are building in West Africa. Not only will these generate useful foreign currency for Dangote Cement to support other expansion projects outside of Nigeria, but they will also help to increase the output of our Nigerian plants. They will also help to improve job creation and increase prosperity in Nigeria, something of which all stakeholders can be proud of.”
About Dangote Cement Plc: It is a leading cement manufacturing firm headquartered in Lagos Nigeria with operations in nine other African countries.
The business model entails manufacturing, preparation, import, packaging, and distribution of cement and other related products. It is reputed to be the most capitalised company on the Nigerian Stock Exchange.
The company has consistently declared dividends since it became a quoted company on the Nigerian Stock Exchange with N2, N2.25, N1.25, N3, N7, N6, N8, N8.50 and N10.50 declared for 2009, 2010, 2011, 2012, 2013, 2014, 2015, 2016 and 2017 financial years respectively.
Dangote Cement Plc’s share price is currently trading at N182.40 on the Nigerian Stock Exchange. (Nairametrics)
