Aliko Dangote Gains $700M in One Week
Aliko Dangote, the richest man in Africa, saw his net worth increase by $700 million within a week as Dangote Cement recorded a double digits profit. This was due to the rise in the share price of the publicly traded company after hitting a one-year low by the end of October.
The share price increased by 8.84% as of the first of November from N220.5 ($0.50) to N240 ($0.546) as of today. With the double-digit recovery, Aliko Dangote’s 86% share in the company increased his net worth, according to the Bloomberg Billionaires ranking, from $17.6 billion at the beginning of November to $18.3 billion as of today.
With the growth trajectory, an Australian-based research company, Simply Wall St, said the company is expected to grow by 18.83% annually, and analysts are unanimous in their prediction that the company’s stock price will rise by 38.8% in the short to medium.
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Dangote Cement 2022 fiscal year performance
Despite the predictions, the African billionaire’s flagship company, Dangote Cement, could not outdo its last year’s performance due to lower demand and rising energy costs. This saw a drop in profit at the end of the first nine months of its current fiscal year.
In the published financial statement for the nine months of its 2022 fiscal year, the company’s profit was reduced by 23.4%. It declined from $635.2 million (N278.25 billion) to $486.5 million (N213.1 billion).
The drop in profit can also be attributed to an increase in operating costs such as raw material costs, plant maintenance costs, and staff salaries; an increase in administrative expenses and a rise in selling and distribution expenses that exceeded $486.1 million (N212.9 billion).
Due to the financial performance, the group’s total assets plunged slightly at the beginning of 2022 from $5.45 billion (N2.39 trillion) to $5.32 billion (N2.33 trillion) in nine months. Also, the retained earnings dropped from $1.98 billion (N868.27 billion) to $1.69 billion (N740.32 billion).
If the drop in earnings persists, Aliko Dangote might receive a dividend lower than the $704.1 million (N293 billion) he received in 2022 next year.
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