Caption: From left, Acting Company Secretary, Dangote Cement Plc, Edward Imoedemhe; Chairman, Dangote Cement Plc, Aliko Dangote; Group Managing Director/CEO, Dangote Cement Plc, Arvind Pathak; and Non-Executive Director, Dangote Cement Plc, Olakunle Alake at the 14th Annual General Meeting of Dangote in Lagos on April 13, 2023.
Chairman of Dangote Cement Plc, Aliko Dangote, on Thursday in Lagos assured shareholders and other stakeholders of improved profit in the years ahead by leveraging on strategic innovations across Africa that would guarantee continuous growth of their investments.
Speaking at the company’s 14th Annual General Meeting (AGM), he affirmed the bright prospects for the company as the board and management works towards keeping “our shareholders happy, not only the shareholders but all our other stakeholders… Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality.
“We will continue to contribute to improving regional trade within Africa by building plants across West and Central Africa, guided by our vision of making the region cement and clinker self-sufficient. In addition, we aim to deliver higher returns and value to our shareholders,” he stressed further.
Dangote stressed that despite the challenging macroeconomic environment in 2022, the company still made great strides, performing admirably, while remaining Africa’s largest and leading cement producer.
In the face of unexpected challenges in 2022, he said the company implemented robust cost reduction strategies to manage the inflationary environment, and thus enhanced its competitiveness while maintaining high levels of product quality and customer service delivery.
In addition, he told shareholders, “we achieved giant strides in transitioning to cleaner energy, with our cost containment initiative propelling the use of Alternative Fuel (AF) to replace more expensive fossil fuels, such as coal and gas. We also increased the use of Compressed Natural Gas (CNG) for our trucks due to the rising diesel cost environment.
“These efforts have helped us reduce our cost base and enhanced our flexibility, enabling the Company to respond more effectively to changes in the market. As a result, we recorded revenue and EBITDA growth of 17% and 3.5% from the prior year respectively, albeit under unprecedented inflationary pressure. We also achieved a profit after tax of ₦382.3bn, up 4.9% compared to 2021.”
Still on the 2022 year-end result, Dangote explained that the company achieved its highest revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) in history at ₦1.618tr and ₦708.2bn, respectively.
The exceptional EBITDA, according to him, was supported by its numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products.
“Over the last 12 years, volumes have grown by a double-digit compound annual growth rate of 11.2%. Similarly, EBITDA has grown at a compound annual growth rate of 16.3%, over the same period, implying a five-fold increase and revealing a true growth story.
“Accordingly, we closed the year with a profit after tax of ₦382.3bn and an Earning per Share (EPS) of ₦22.27. Despite these accomplishments, we are not resting on our laurels. We recognise that the business environment remains volatile, so we will continue to evolve with the changing times while embracing technological advancement,” he added.
Commenting on the result, Mrs. Bisi Bakare, Chairman of the Pragmatic Shareholders Association, commended the company’s management for its doggedness during the year under review for still being able to exceed the shareholders’ expectation in view of the inclement economic weather under which companies operated in the country.
She said shareholders are happy with the returns, which only means that the company was living up to its billing as the largest in Sub-Saharan Africa, adding that if not for the resilience of the management, the company would not be able to post such an impressive performance in 2022.
Mrs. Bakare alluded to the successful listing of the N300bn series bond by the Company, saying the company succeeded largely due to the confidence reposed in the company and its management by the investing public.
“It is not all companies that could record such a feat given the huge amount involved and the biting economic situation”, she stated.