Group Managing Director/CEO, Dangote Cement Plc, Michel Puchercos (left); Dr. Faruk Umar, Shareholder; Sir Sunny Nwosu, Shareholder, and Non-Executive Director, Dangote Cement Plc, Olakunle Alake during the 12th yearly general meeting of Dangote Cement Plc, held in Lagos, yesterday.
Shareholders of Dangote Cement Plc yesterday, approved N272.6 billion as dividend payout, culminating to N16 per share for the 2020 financial year.
Besides, the shareholders applauded the management for achieving a revenue of N1.034 trillion despite the devastating effect of COVID -19 pandemic during the period.
At the company’s virtual 12th yearly general meeting yesterday, the shareholders also berated numerous distributors who arbitrarily sell cement at high costs against the factory price.
Specifically, the founder, Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu commended the company for attaining a trillion-naira revenue growth as well as strict adherence to corporate governance principles.
He appealed to the company to caution its numerous distributors that arbitrarily sell cement at very high costs against factory price to enable the company to sustain competitiveness.
Also, a shareholder, Nona Awoh applauded the board for the consistency in dividend payout, urging the board to consider paying dividend twice a year.
He also expressed satisfaction with the state of affairs in the company, especially for sustaining its profitability. Chairman of Dangote Cement Plc, Alhaji Aliko Dangote assured shareholders of enhanced returns in the current financial year. He also noted that the company is doing everything within its powers to create wealth for its shareholders and other stakeholders.
He said: “Despite the challenging year surrounding by COVID-19 pandemic, 2020 was a record year for us across board. Dangote Cement hit the N1 trillion mark in term of revenue. Group revenues were up 16 per cent compared to 2019.
“We record group cement sales of 25.7 million tonnes (Mt) and revenues of N1.034 trillion. Most notably was our record high EBITDA of N478.1 billion, up 20.9 per cent compared to 2019…”
He said the board maintains the 2019 dividend of N16 per share, reinforcing its commitment to maximising shareholder value. Dangote said the company commissioned the Apapa and Onne export terminals and commenced clinker exports to West and Central Africa in 2020.
According to him, the vision for its exporter strategy is to make West and Central Africa cement and clinker self-sufficient, with Nigeria as the main supplier and exporter. He pointed out that the company increased its capacity by three metric tonnes (Mt) on Obajana while commissioning its gas fired power plant in Tanzania.
On the company’s outlook for 2021, Dangote said the company remained optimistic about the future, noting that the board is considering all strategic and financial options to boost profitability.
He said the company would focus more on increasing capacity in the Nigerian market and building grinding plants across West and Central Africa to be fed clinker from Nigeria.
“We welcome the Africa Free Trade Agreement which supports our export strategy and long-term growth in Africa. Dangote Cement is well positioned to capture demand driven by the economic recovery in 2021, as the region recovers from the impact of the pandemic and all our countries of operation return to growth.”
The Group Managing Director, Michel Puchercos said the company is constantly exploring ways of creating value for its shareholders, in addition to its consistent dividend and capital appreciation.
“The company have also been pursuing several options such as the share buyback programme to return cash to its shareholders. Our strategy is to make the company more attractive to investors in the near term and for future long-term growth.” He expressed optimism on the company’s outlook, adding that the company would focus on meeting its local demand and across Africa.