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Dangote Cement Plc, the largest producer of the building material in Africa’s most populous nation, has wooed investors with a dividend of N502.5 billion as the company’s profit was bolstered by gains on monetary position.
The board of directors of the company have approved a final dividend of N30 per share subject to withholding tax and approval. Dangote Cement has 16.752 billion shares outstanding after its recent buyback.
The stellar performance and dividend announcement that comes amid spiraling input costs, foreign exchange revaluation losses, high interest rate environment, and decrepit infrastructure is expected to spur a rally in stock price.
For the year ended December 2023, Dangote Cement’s net profit was up 19.16 percent to N455.58 billion from N382.31 billion as at December 2022.
The growth at the bottom-line (profit) was driven by gains on monetary policy that moved by 248.58 percent to N101.16 billion as at December 2023.
Operating profit followed the same growth trajectory as it jumped by 25.83 percent to N734.26 billion as at December 2023 from N585.87 billion as at December 2023.
The cement maker also benefited from price adjustment needed to compensate for rising input costs as revenue spiked by 36.64 percent to N2.20 trillion.
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