Dangote Cement, the Largest sub-Saharan cement producer in Africa, says it recorded a 17 per cent increase in revenue for 2022, reaching $2.13 billion. The industrial giant despite a decrease in sales volume increased its bottom line by hiking the prices of products to boost turnover.
Reports say operational costs and the urgency to commit part of the revenue to expansion boosted growth leading to a net profit of approximately $509.7 million.
Key factors that contributed to Dangote Cement’s increased annual sales
First, Dangote Cement invested about $332.4 million in twenty-five subsidiaries, most of them outside Nigeria, a move targeted at scaling its operations. Second, Dangote was able to increase revenue due to a rise in the prices of its products. The rise was further affected by selling and distribution expenses in Nigeria.
Dangote’s cement profit before tax fell 2.7 per cent to approximately $698.7 million as the cash allocated to servicing debt through finance costs nearly doubled. Also, profit after tax improved, deriving strength from a lower income tax expense.
Dangote Cement and shareholders
The industry giant also revealed that it will stick to the same amount paid to shareholders in the fiscal year 2021 for 2022. In its audited annual report, the company hinted that it would pay a dividend of N20 per share for 2022, retaining the payout level for 2021 when it declared N340.8 billion in total.
The report also noted that Directors “consider the capital needed to fund the company’s operations and expansion plans,” above the need to raise cash rewards for shareholders.
Subject to withholding tax, the dividend proposal awaits shareholder’s endorsement at Dangote Cement’s forthcoming annual general meeting, with the qualification date set for 30 March. Further reports suggest dividends will be paid electronically to shareholders whose names appear in the Register of Members on April 14, 2023.
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