Friday, November 29, 2024

Dangote Cement posts N382 billion profit, proposes dividend

Abstract: Profit surged 5% in 2022.

Dangote Cement has reported a 5% surge in its full-year profit in 2022 after high operational costs sliced a large chunk off its more than N1.6 trillion revenue.

– A key point to note

The cement maker, Africa’s largest producer of the building material, posted a profit after tax of N382 billion, up from N364 billion recorded in 2021. It reported higher earnings per share of N22.27 above N18.92 projected by Chapel Hill Denham.

– Why this matters

The company has proposed a final dividend of N20 per share, subject to board approval, to be paid on April 14. Shareholders must have their names in the register by March 30 to qualify.

– Learn more

Dangote Cement saw a difficult year in 2022 as it struggled to contain costs amid inflationary pressures and a weakening naira/dollar exchange rate. In the full-year report, its operating expenditure jumped by 46.5%.

The company’s cement volume declined by 4.3% in the third quarter and it recorded a cumulative sales decline of 6.2% for the first nine months of the year. The company blamed lack of gas availability.

Gas supply difficulties were acute at the Obajana plant in Kogi state, the largest of the company’s three factories in Nigeria, with a capacity of 16.25m tonnes.

In October, the company shut the plant after Kogi government agents sealed the premises over alleged unpaid taxes.


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