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We’ve Paid N1tr Dividend In 7 Years- Dangote Cement Mgt

The management of Dangote Cement Plc, on Wednesday said it has remained a shareholder-friendly company over the years, as can be seen from the growth in its dividend payout over the past seven consecutive years, while championing growth of the Nigerian economy.

Within the period, Investdata checks showed that the company paid a total of N954.1bn, at an average of N159.02bn a year during the period, a breakdown of which showed, according to a statement by the group, that cumulative dividend grew by 433.46% over the period, from N51.1bn in the 2013 financial year, to last year’s N272.6bn.

A further breakdown showed that 2014 dividend grew by 133.46% to N119.3bn in 2014; after which it dropped by 14.33% to N102.2bn the following year; and then jumping by 33.37% to N136.3bn in 2016. The payout figure rose by a marginal 6.23% in 2017 to N144.8bn; and then to N178.9bn, representing a 23.55% growth in 2018; before last year’s 52.38% leap.

7-year Dividend History, Source: Investdata Research

The company is majority 85.96% owned by Alhaji Aliko Dangote, chief executive of Dangote Industries Limited (Direct: 27,642,637 shares, and Indirect: 14,621,387,610 units as of February 25, 2020, according to the 2019 audited financial report).

Guillaume Moyen

Within the period, according to Guillaume Moyen, the company’s Group Chief Financial Officer, the biggest achievement of Dangote Cement Plc yet, “is taking Nigeria from being a big importer of cement to being self-sufficient, and now an exporter.”

Moyen, who spoke during the virtual Facts Behind the figures and Facts Behind Sustainability Report organized for capital market stakeholders on the Nigerian Stock Exchange (NSE), said the company is presently “developing road infrastructure and durable concrete roads, which are a major economic catalyst and hugely beneficial for the country’s transport sector.

“We began our operations in Nigeria and have been expanding into other countries over the years.  Since 2011, we have been enjoying robust volume growth.

“To be more specific, we have been growing at a compound annual growth rate of 13.4%,” he added, stressing that the company has an outstanding financial profile and has achieved excellent financial performance during this period.

“If we look at the last seven years, you will see that our EBITDA has increased by a CAGR of 9%… We have paid over N1tr in dividends to shareholders in the last seven years.  As Africa’s largest cement manufacturer, we will continue to prioritize giving value to investors and other stakeholders,” he added.

Michel Puchercos

In his presentation, the Group Chief Executive Officer, Michel Puchercos, said amidst the Covid-19 challenges, the company placed emphasis on the health and safety of team members, customers, suppliers, and communities at large as a core value.

“We have implemented several rigorous protocols in all our operations across the continent to support public health policies and ensure the highest level of protection of our stakeholders. In addition, we are closely monitoring all markets according to the guidance provided by the authorities in each country to prevent and mitigate adverse effects of the pandemic. In this context, we continue to provide superior services and deliver high quality products to our customers,” he assured.

Puchercos stated that as Africa’s largest cement manufacturer, Dangote Cement Plc takes its role of social responsibility seriously; taking deliberate steps to deploy resources that will help their communities overcome hardships brought about by the crisis.

“We have spent $1.9m in response to COVID-19 to ensure the safety and protection of our people, customers and communities. In Cameroon, we donated PPEs, thermometers and many more to the Ministry of Public Health and major hospitals in Douala. In Ethiopia we made cash donations to the government plus various donations including face masks, hand sanitizers and water supply.  These are just a few examples,” he said. 

The Group CEO explained that while the world faces economic recession and downturn, Dangote Cement is fortunate enough to have had a decent start to the year as reflected in its financial for the half-year ended June 30, 2020. Within the period, he said group EBITDA rose slightly up, “supported by strong operating performance in Nigeria and Pan-Africa amidst COVID-19 challenges.

“EPS was up 6.3% at N7.45. We are fortunate to have resilient H1 2020 results amidst impact of COVID-19. Cement is an essential building material with no viable substitutes and the global cement industry continues to grow driven by urbanisation, population growth, housing growth, industrialisation, and infrastructure development, especially in emerging economies such as Africa, where we operate.

“We are presented with a huge opportunity and are strategically positioned to take advantage of these opportunities with our operational efficiency, product quality, modern facilities, and technology to leverage our unique economies of scale and know-how,” he said.

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