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Dangote Cement to pay Shear Holders N16 dividend per share

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Africa’s largest cement producer, Dangote Cement Plc yesterday declared a dividend per share of N16 for the 2020 business year as Nigeria’s most capitalised quoted company paid taxes of about N97 billion to the government.,

Key extracts of the audited results and accounts of Dangote Cement for the year ended December 31, 2020 released yesterday at the Nigerian Stock Exchange (NSE) showed that Dangote Cement’s Nigerian operations during the period sold 15.9Mt for the full year 2020, compared to 14.1Mt in 2019. This included both cement and clinker sales, which implied a 12.9 per cent growth for the full year 2020.

Looking at the domestic sales alone, Nigerian operations sold 15.6Mt, up by 14.3 per cent year on year and resulting in an increase in market share.

Revenue for the Nigerian operations increased by 18 per cent to N720 billion, due to increasing demand in the domestic market. The  growth was enhanced by the innovative national consumer promotion “Bag of Goodies – Season 2” and lower rains in the third quarter compared to the previous year.

The Nigerian business recorded strong earnings before interest, taxes, depreciation and amortisation (EBITDA) of N421.4 indicating a margin of 59 per cent. Dangote Cement posted a record high pan-African EBITDA of N71.3 billion, which went up by 49 per cent. During the year, the cement group commissioned its gas power plant in Tanzania. Group earnings per share was up by 36.9 per cent to N16.14.

The report showed that Dangote Cement recorded strong performance not only at the top line but also at the bottom line, owing to cost saving measures. Despite inflationary pressures and foreign exchange volatility, disciplined cost control measures enabled the company to maintain a relatively flat cash cost per tonne. The cost control measures include improved plant efficiency, better fuel mix and general overhead optimisation.

Chief Executive Officer, Dangote Cement Plc, Michel Puchercos said last year was a good for Dangote Cement across board while several landmarks made it a productive year such as the group’s maiden clinker shipment, maiden bond issuance and successful buyback programme.

“We increased our capacity by 3.0 million metric tonnes in Nigeria, commissioned our two export terminals and commissioned our gas power plant in Tanzania. All these were achieved whilst we focused on protecting our people, customers and communities from the impact of the pandemic.

“Dangote Cement recorded strong top-line growth supported by strong cement demand. Profitability was further bolstered by our disciplined cost control measures in what we believed to have been a highly inflationary and volatile year. These measures resulted in a 37.7 per cent increase in profit after tax to N276.1 billion.

“I am delighted to report that Dangote Cement experienced its strongest year in terms of EBITDA and strongest year in terms of volumes. Despite a challenging environment, group volumes for the year were up 8.6 per cent and Group EBITDA was up 20.9 per cent.

“Looking ahead, we have strengthened our alternative fuel initiative which focuses on leveraging the circular economy business model and reducing exposure of our cost base to foreign currencies fluctuations. We continue to embed Dangote Cement’s seven sustainability pillars into every aspect of our operation and culture.

“We remain committed to keeping safe our staff and communities by being fully compliant with health and safety measures in all our territories of operation. We are focused on adapting to the rapidly evolving markets in which we operate,” Puchercos said.

Dangote Cement is sub-Saharan Africa’s largest cement producer with an installed capacity of 45.6Mta across 10 African countries and operates a fully integrated “quarry-to-customer” business with activities covering manufacturing, sales and distribution of cement.

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