Shareholders of Dangote Cement Plc on Wednesday approved the N272.6bn dividend for the full-year ended December 31, 2020, which translates to a N16 per unit, from its earnings per share of N16.14, as against N11.29 in 2019.
Speaking at the virtual 12th Annual General Meeting (AGM) held in Lagos, the shareholders also commended the management for the full disclosure regarding the share buyback process and the various donations made towards assisting the government and the private sector to wade through the COVID-19 pandemic era.
Commending the board for the impressive performance, despite the economic challenges in the year under review, the National Coordinator emeritus of the Independent Shareholders Association of Nigeria, Sir Sunny Nwosu, urged the management to prevail on its distributors who arbitrarily sell cement higher than the recommended price.
While aligning with Nwosu, another shareholder, Nona Awoh, urged the board to consider payment of dividend twice a year.
The company’s chairman, Aliko Dangote, said the board decided to maintain the 2019 dividend of N16 per share, thereby reinforcing its commitment to maximising shareholder value. He assured the shareholders of better returns always, assuring that the board and management are doing everything possible to create wealth for shareholders and other stakeholders.
In his review of the company’s performance in the period under consideration, the chairman said “Dangote Cement hit the N1tr mark in term of revenue. Group revenues were up 16% compared to 2019. We recorded group cement sales of 25.7m tonnes (Mt) and revenues of N1.034tr.”
Continuing, Dangote recalled that “most notably was our record high EBITDA of N478.1bn, up 20.9% compared to 2019…”
Also, the chairman recalled that during the period under review, “we commissioned our Apapa and Onne export terminals in Nigeria and commenced clinker exports to West and Central Africa.
“The vision for our exporter strategy is to make West and Central Africa cement and clinker self-sufficient, with Nigeria as the main supplier and exporter. We also remain focused on meeting the demand in Nigeria and as such, we increased our capacity by three metric tonnes (MT) on Obajana and we commissioned our gas-fired power plant in Tanzania.
“Our Nigerian domestic operations sold 15.6Mt, up 14.3% year-on-year, growing ahead the market. This strong volume growth was enhanced by our successful innovative national consumer promotion ‘Bag of Goodies- Season 2’, lower rains in the Q3 compared to the previous year and the low interest rate environment driving strong demand for real estate assets and supporting the construction sector.
“Pan-Africa volumes were up by 4.4% to 10.0Mt despite the various lock-downs and restrictions in 2020. The Pan-African region achieved a record high EBITDA of N71.3bn, up 49%, notably supported by strong performance in Ethiopia and Senegal.”
On the outlook for 2021, Dangote said the Company remains optimistic about the future, saying that the board is considering all strategic and financial options for the company.
“We will continue to improve our efforts in sustainability by applying ‘The Dangote Way’ to the seven Sustainability Pillars of our business culture and operations. We are also focused on increasing capacity in the Nigerian market and building grinding plants across West and Central Africa to be fed clinker from Nigeria.”
He said the company welcomes “the Africa Free Trade Agreement which supports our export strategy and long-term growth in Africa. Dangote Cement is well positioned to capture demand, driven by the economic recovery in 2021, as the region recovers from the impact of the pandemic and all our countries of operation return to growth.”
Also, the Group Managing Director/CEO of Dangote Cement Plc, Michel Puchercos said that despite the impact of the COVID-19 pandemic, 2020 was a record year for Dangote Cement across board.
On share buyback, he stated that Dangote Cement is constantly exploring ways of creating value for its shareholders, in addition to its consistent dividend and capital appreciation. He said: “The company has also been pursuing several options such as the share buyback programme to return cash to its shareholders.”
“Our strategy is to make the company more attractive to investors in the near term and for future long-term growth,” he added.
Puchercos said “the outlook for the company is very positive as we are focused on meeting the demand locally and across Africa. We look forward to the African Continental Free Trade Agreement supporting our export strategy to West and Central Africa.”
Photo caption: From left, Chairman, Dangote Cement Plc, Aliko Dangote; Group Managing Director/CEO, Dangote Cement Plc, Michel Puchercos and Non-Executive Director, Dangote Cement Plc, Olakunle Alake during the 12th Annual General Meeting (AGM) of Dangote Cement Plc, held in Lagos on Wednesday, May 26, 2021.
