…Aliko Dangote to get N439bn as dividend
Cement giant, Dangote Cement, increased its market share in 2023 from industry competitors as it controlled 71.8 percent of cement industry’s revenue and 79.1 percent of its profit after tax, the Nigerian Observer’s analysis has shown. In 2022, Dangote Cement controlled 68.8 percent of the revenue generated in the nation’s cement industry as well as 71.2 percent of the industry profit after tax, indicating that in spite of the challenges confronting the nation, the company was able to make some progress noticeable in its top and bottom lines.
In contrast, Lafarge and BUA Cement shed some market weight in the year that just ended. Lafarge Cement controlled 13.2 percent of the cement industry’s revenue in 2023 as against 15.9 percent in 2022. The firm also accounted for 8.9 percent of the industry profit as against 10 percent in 2022.
For BUA Cement, the firm accounted for approximately 15 percent of the revenue of the cement industry last year, in contrast to 15.34 percent in 2022. In terms of industry profit, BUA Cement accounted for 12.1 percent of the nation’s cement industry’s profit in 2023 compared to 18.8 percent in 2022.
On a company-by-company basis, Dangote Cement generated N2.208 trillion as revenue in 2023, and amounted to 36.44 percent increase when compared to N1.62 trillion generated in 2022. Cost of sales rose by 51.80 percent, reflecting the huge rise in the cost of diesel and other petroleum products in the country, caused in part by subsidy removal, high cost of crude oil at the international market, as well as the free float of the naira.
Consequently, cost of sales relative to revenue increased to 45.6 percent, up from 41 percent in the previous year.
Gross profit rose by 25.8 percent to N1.2 trillion in 2023, up from N955.43 billion in 2022.
Profit after tax was N455.58 billion in 2023, an increase of 19.2 percent over N382.31 billion generated in the previous year.
The company has proposed a final dividend of N30 per ordinary share for 2023, representing an increase of 50 percent over N20 per share paid in 2022.
“A final dividend of N30 per share, subject to the appropriate withholding tax and approval, will be paid to shareholders whose names appear in the Register of Members at the close of business on Monday, April 15, 2024.
“By Monday, April 29, 2024, dividends will be paid electronically to shareholders whose names appear in the Register of Members as of Monday, April 15, 2024, and who have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts,” Dangote Cement stated in a note to investors.
Meanwhile, Africa’s richest man, Aliko Dangote, will earn N438.47 billion through his direct and indirect shareholdings in Dangote Cement. According to the firm’s audited financial statements for 2023, Dangote controls 0.16 percent of Dangote Cement’s shareholding directly and 85.8 percent indirectly through Dangote Industries Limited.
With this amount of shareholding, Africa’s richest man will be paid N829.28 million as dividend from direct shareholding and N438.64 billion through indirect shareholding.
Lafarge realised N405.50 billion as revenue in 2023, an increase of 8.64 percent over N373.24 billion generated in 2022. Cost of sales surged by 12.3 percent to N198.79 billion from N177.03 billion in 2022. Gross profit rose to N206.72 billion in 2023 from N196.22 billion, representing an increase of 5.35 percent.
However, profit for the year declined by 4.7 percent to N51.14 billion, down from N53.65 billion in 2022.
BUA Cement recorded mixed results between its top and bottom lines. Revenue for the year rose by 27.4 percent to N459.99 billion, up from N360.99 billion in the previous year.
Gross profit increased by 13.1 percent to N183.96 billion in 2023, up from N162.61 billion in the previous year.
Notwithstanding, both profit before tax and profit after tax fell by double digits each. Profit before tax declined to N67.23 billion in 2023 compared to N120.15 billion in 2022. Profit after tax fell by 31.24 percent to N69.45 billion, down from N101.01 billion in 2022.
BUA Cement has proposed a final dividend of N2 per share for shareholders whose names are in the register of members as at 9th August 2024. Payment date is 29th August 2024.
