By DAYO ADESULU
Dangote Cement EBITDA Climbs to ₦1.38 Trillion
In a historic financial leap, Dangote Cement EBITDA crossed the ₦1 trillion mark for the first time since its inception, reaching an all-time high of ₦1.382 trillion. This milestone marks a 56% year-on-year increase, underscoring the company’s operational efficiency and resilience in the face of macroeconomic volatility.
The earnings before interest, taxes, depreciation, and amortization not only broke records but also strengthened the company’s foundation for future growth and investor confidence.
Revenue Hits ₦3.58 Trillion: 62.2% Year-on-Year Growth
Dangote Cement’s total revenue soared to ₦3.5806 trillion, representing a 62.2% surge compared to the previous year. This impressive growth is largely attributed to robust demand in domestic markets, particularly Nigeria, and the success of dynamic pricing strategies and cost-optimization efforts.
Shareholders Reap the Rewards
₦30 Dividend Per Share Declared
One of the most celebrated outcomes of the company’s record year was the N30 dividend per share payout, unanimously approved by shareholders. This translates to a whopping ₦502.6 billion in total shareholder returns—marking one of the highest dividend payouts by any Nigerian manufacturing company to date.
- 2024: Dangote Cement spends N13.2 Billion on CSR; pays N502.6 Billion as dividends
- https://crediblenews.com.ng/west-africas-trade-crisis-why-intra-african/
EPS Grows by 12.3% to ₦29.74
In parallel with dividend growth, earnings per share (EPS) rose to ₦29.74, a 12.3% increase from the previous year’s ₦26.47. Despite the dividends slightly exceeding the earnings, shareholders were quick to commend the strategic foresight and shareholder-first philosophy of the Board.
Strategic Leadership Behind the Success
Aliko Dangote’s Visionary Strategy
The outstanding performance of Dangote Cement in 2024 is a reflection of Chairman Aliko Dangote’s long-term strategic focus. Speaking at the Annual General Meeting, Dangote emphasized that the company’s leadership in cost efficiency, product quality, and operational scale is rooted in heavy investment in cutting-edge equipment from Europe and China.
Emphasis on Cost Leadership and Quality
The company continues to pursue a cost-leadership strategy across all markets by operating large-scale, energy-efficient cement plants. This focus enables Dangote Cement to deliver higher-quality products at competitive prices, bolstering its market share across the African continent.
Shareholder Sentiments and Reactions
Stakeholder Trust in Management’s Decisions
Investors widely lauded the dividend decision, describing it as bold and strategic. The Association for the Advancement of Rights of Nigerian Shareholders (AARNS) expressed full satisfaction, highlighting the management’s resilience amid economic turbulence and expansion pressures.
Commendations from Shareholder Associations
Mrs. Bisi Bakare, head of the Pragmatic Shareholders Association of Nigeria, praised the company’s commitment to consistent dividend payments, noting that Dangote Cement stood alone in rewarding investors with such a robust payout even in a tough economic climate.
Robust Growth Amid Economic Headwinds
Navigating Forex Fluctuations and Expansion
The company’s exceptional performance came despite foreign exchange volatility and extensive capital commitments for expansion. Yet, Dangote Cement managed to not only sustain profitability but also reinforce shareholder value, a testament to prudent financial management.
Maintaining Strong Dividend Payouts
Despite the challenges, the company retained its commitment to rewarding investors, setting a benchmark for resilience and corporate governance in Nigeria’s manufacturing sector.
Massive Boost in Corporate Social Responsibility (CSR)
469.8% Increase in CSR Spending
Dangote Cement reported a massive increase in CSR spending, rising by 469.8% to ₦13.2 billion. This unprecedented jump reflects the company’s commitment to giving back to the communities in which it operates.
Focus on Education, Health, and Empowerment
CSR programs spanned vital areas such as education, agriculture, healthcare, infrastructure, and youth empowerment, reinforcing the company’s reputation as a socially responsible and community-driven brand.
Expansion Projects and Sustainability Drive
Upcoming Plants in Côte d’Ivoire and Ogun State
Chairman Dangote revealed two major infrastructure projects on the horizon: a 3MTA grinding plant in Côte d’Ivoire and a 6MTA integrated plant in Itori, Ogun State. These facilities aim to boost production and meet growing regional demand.
Greener Logistics with 1,500+ CNG Trucks
In a strategic pivot towards sustainability, Dangote Cement acquired 1,500 Compressed Natural Gas (CNG) trucks, replacing diesel vehicles to cut costs and reduce emissions. Plans are in motion to double the fleet to 3,000, reinforcing the company’s climate-conscious agenda.
