Despite the prevailing economic recession in Nigeria, Dangote Cement Plc records impressive returns in 2016 and pays good dividend to its shareholders

Dangote Cements

This is certainly a season of joy for the shareholders of Dangote Cement Plc. In spite of the harsh effects of the prevailing economic recession that forced many companies to fold up, the shareholders were showered with a dividend payout of N144.8 billion, which translated to N8.50 kobo per share against N8 per share paid in the corresponding period of 2015.

Festus Akano, President of Amiable Shareholders Association of Nigeria, said the shareholders were pleased with the board and management of Dangote Cement. For him, the increase in dividend attests to the doggedness and entrepreneurial spirit of the Dangote Group.

“We are very happy and pleased with the result. 2016 was very tough with the recession and fluctuation in the foreign exchange market, which the Chairman also said affected their operations. But despite the challenges, the company was able to pay us a very good dividend better than last year and even gave us hope of better returns on our investments in the years to come. This is commendable and it is only a company like Dangote Cement that can achieve this laudable feat,” he said.

Aliko Dangote, chairman of Dangote Cement said the guiding strategy of the company in every country of its operations was to be the leader on costs, quality and service.

The company, he noted, builds large, modern, highly efficient plants that combine the latest equipment from Europe, China and beyond to enable it produce higher-quality cement at lower costs, thereby giving it strong competitive advantages. “Looking back at the 2016 financial year, I am pleased to report that the volume of our cement sales increased by 25 percent to nearly 23.6Mt. Of this, almost 14.8Mt was sold in the Nigerian market.

Revenues increased by 25.1 percent to N615.1 billion of which 68.3 percent was generated in Nigeria (excluding eliminations) and 31.7 percent from Pan-African operations. Our earnings before interest, depreciation and amortisation (EBITDA) decreased only slightly to N257.2 billion, with Pan-African operations contributing N26.5 billion, excluding central costs. Earnings per share increased by 4.5 percent to 11.34,” Dangote said.

By Dike Onwuamaeze

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