Dangote Cement pays over N1trn dividends in seven years

Africa’s largest cement manufacturer, Dangote Cement has grown the wealth of its shareholders, paying over N 1 trillion as dividends in the past seven years.

According to the cement company’s Group Chief Financial Officer, Mr. Guillaume Moyen, Dangote Cement is focused on growing the Nigerian economy.

A breakdown of the seven-year dividend history gleaned from the company’s financial statements indicated that N51.1 billion was paid in 2013, N119.3 billion in 2014, N102.2 billion in 2015, N136.3 billion in 2016, N144.8 billion in 2017, N178.9 billion in 2018 and N272.6 billion in 2019.

Moyen, who disclosed this during the virtual Facts Behind the Figures and Facts Behind Sustainability Report by the company to capital market stakeholders at the Nigerian Stock Exchange(NSE), said Dangote Cement has a sustained focus on helping the Nigerian economy and doing what it can to benefit the economy. 

He said: “Arguably our biggest achievement to date is taking Nigeria from being a big importer of cement to being self-sufficient, and now an exporter.  We are 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%.

“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 N1 trillion 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.”

In his presentation, Group Chief Executive Officer, Dangote Cement, Michel Puchercos, said amidst the COVID-19 challenges, the company placed an 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 said.

Puchercos stated that as Africa’s largest cement manufacturer, the company takes the  role of social responsibility seriously and   has taken deliberate steps to deploy resources to help  the communities overcome hardships in this crisis.

“We have spent $1.9 million 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.  

He 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 first half financial results.

“H1 Group EBITDA was slightly up supported by strong operating performance in Nigeria and Pan-Africa amidst COVID-19 challenges. EPS was up 6.3 per cent 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,” Puchercos said.