Dangote pays 90% of net profit as dividend, invests N85.6 billion

For increasing investors’ value on investment through dividend payout and adherence to corporate governance principles, shareholders of Dangote cement Plc, yesterday commended the company’s board for its 2017 performance, as they approve a dividend of N10.50 per 50 kobo share for the 2017 financial year.

This dividend represents 90 per cent of net profit and 23.5 per cent rise when compared to N8.50 kobo per share declared in the previous year.

The shareholders, who spoke at the company’s 2017 yearly general meeting in held in Lagos Wednesday, also commended the management for the performance and efficient running of the company, amid harsh economic environment.

Specifically, the President of the Progressive Shareholders Association, Boniface Okezie expressed satisfaction with the state of affairs in the company especially for abiding by strict corporate governance principles and sustaining its profitability.

He however urged the board to do everything within its powers to give bonus to shareholders in the next financial year.

Another shareholders’ association leader Dr. Umar Farouk, urged the regulators to adequately compensate the management of the Dangote Cement with an award as it has consistently kept faith with its shareholders.

He expressed optimism on the pan-African plants, especially now that the plants are contributing significantly to the turnover of the company.

“It is a statement of fact that we are lucky to be shareholders of this great company.

If you see what our subsidiaries across Africa are contributing to the turnover, then you will understand what I am talking about.

I am very happy and our members are upbeat for the future, knowing that it will only get better.”

The Chairman, Dangote Group, Aliko Dangote, while addressing shareholders said the company made investment worth N85.6 billion during the period under review including the new facility opened in the Republic of Congo and Sierra Leone.

He explained that the total production capacity of the new facilities stood at 2.0 Mta, adding that it has increased the firm’s total capacity to 45.6Mta.

Furthermore, he said the facility has increased its visibility across sub-Saharan Africa from eight countries of operation to ten.

According to him, the company recorded 31 per cent increase in revenue to N805.6 billion while EBITDA rose by 50.9 per cent to N388.1 billion.

Dangote however attributed the 31 per cent increase in the company’s revenue of N805.6 billion to its pan-African operations’ growth which also recorded a significant increase in revenue from N195 billion to N258.4 billion in 2017.

He said: “Pan African operations increased volumes by 8.4 per cent, with Ethiopia, Senegal, Cameroon and South Africa all performing strongly and close to their operating capacity”.