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Dangote Cement Plc, Africa’s largest cement producer, is set to unlock higher returns and value for its shareholders and stakeholders, according to its Chairman Aliko Dangote, who ranks as Africa’s richest billionaire.
Speaking at the 14th Annual General Meeting (AGM) held in Lagos today, Dangote highlighted the company’s strategy of driving organic growth in Nigeria and Pan-Africa, while improving regional trade within Africa by building plants across West and Central Africa.
“We will continue to make sure that we keep our shareholders happy, not only the shareholders but all our other stakeholders… Our strategy remains steadfast, focused on organic growth in Nigeria and Pan-Africa while ensuring that Africa’s regional integration becomes a reality,” Dangote said.
Dangote Cement Plc has been a true growth story over the last twelve years, with volumes growing at a double-digit compound annual growth rate of 11.2 percent, and earnings before interest, taxes, depreciation, and amortization (EBITDA) growing at a compound annual growth rate of 16.3 percent, over the same period, resulting in a five-fold increase in profits after tax and an earning per share of N22.27 ($0.0484).
Under Dangote’s leadership, the company achieved its highest revenue and EBITDA in history, with N1.618 trillion ($3.52 billion) and N708.2 billion ($1.53 billion), respectively, at the end of its fiscal year 2022.
Dangote attributed this success to the company’s numerous cost containment measures, substituting higher-cost fuel for cheaper alternative fuel products, he explained that these efforts have helped in reducing the group’s cost base and enhanced our flexibility, enabling the company to respond more effectively to changes in the market.
“As a result, we recorded revenue and EBITDA growth of 17 percent and 3.5 percent from the prior year respectively, albeit under unprecedented inflationary pressure. We also achieved a profit after tax of N382.3 billion ($830 million), up 4.9 percent compared to 2021,” he said.
Despite these accomplishments, Dangote assured shareholders and other stakeholders of the company’s management’s resolve to remain profitable by leveraging on strategic innovations for the continuous growth of their investments.
He added that the prospects for the cement company remain bright, and the management will continue to innovate on quality products’ delivery to millions of its customers across Africa while touching the lives of its host communities.
