Aliko Dangote’s cement company records $282 million profit in 2023

Dangote Cement Plc, the multinational cement giant, majority owned by Africa’s wealthiest individual Aliko Dangote, showcased impressive financial performance by the end of 2023.

Despite grappling with a challenging macroeconomic and operational environment, which strained earnings nationwide, the company’s profits surged to more than $280 million, marking a commendable 19-percent increase.

According to its financial report, Dangote Cement witnessed a substantial upswing in profits, climbing from N382.31 billion ($236.3 million) in 2022 to N455.58 billion ($282 million) in 2023, reinforcing its dominant position in Nigeria and the wider African market.

The notable spike in profit was primarily driven by a remarkable 36.4 percent surge in revenue, soaring from N1.61 trillion ($995.4 million) in 2022 to N2.21 trillion ($1.37 billion) in 2023. Despite the challenging economic backdrop, Dangote Cement’s revenue flourished, fueled by the company’s strategic initiatives and market leadership.

The group’s earnings also received an additional boost from a reduced tax burden in 2023. Dangote Cement incurred a total tax expense of N97.5 billion ($60.3 million) in 2023, marking a notable decrease from the N141.7 billion ($87.6 million) recorded in the previous year.

This performance is also evident in Dangote Cement’s balance sheet, with total assets swelling from N2.61 trillion ($1.61 billion) as of Dec. 31, 2022, to N3.94 trillion ($2.44 billion) as of Dec. 31, 2023. Additionally, retained earnings climbed from N969.48 billion ($599.4 million) to N1.098 trillion ($678.9 million), underscoring the company’s financial strength.

As the largest cement producer in Sub-Saharan Africa, Dangote Cement boasts an annual production capacity of 55 million tonnes across 10 countries. The recent establishment of a six-million-tonne plant in Itori, Ogun State, highlights the company’s commitment to bolstering export capacity and contributing to Nigeria’s economic diversification drive.

More than 50 percent of Dangote’s wealth is tied to his 86.6-percent stake in Dangote Cement. In line with the company’s tradition, the board of directors recommended a dividend of N30 ($0.0185) per share at the close of the 2023 fiscal year.

This represents a substantial increase from the N20 ($0.0124) final dividend paid in 2022, aligning with the company’s strategic growth objectives and ensuring significant returns for shareholders, including Aliko Dangote, who stands to receive millions of dollars in dividends from his stake.