Dangote Cement Plc, the flagship cement business of Africa’s richest man Aliko Dangote, reported its highest-ever revenue of N1.38 trillion ($3.31 billion) at the end of 2021, resulting in a profit increase of more than $870 million as the leading cement company continues to benefit from a sustained increase in cement demand.
Dangote Cement, Africa’s largest cement producer, with a production capacity of 51.55 million tonnes per year across 10 countries, was able to capitalize on two important factors in the African cement market and industry in 2021.
This comprises infrastructure and manpower through its robust cement bagging capacity, which expanded from 48.55 to 51.55 million tonnes per year, as well as a continuing increase in cement demand as younger generations invest substantially in real estate, propelled by a new age of architectural concepts.
This resulted in a 33.8-percent increase in revenue from N1.03 trillion ($2.47 billion) in 2020 to N1.38 trillion ($3.31 billion) at the end of 2021, owing to an increase in sales volumes from 25.72 million tonnes to 29.27 million tonnes and pricing benefits from an increase in the price of cement bags.
Dangote Cement’s profit increased by 33 percent from N276.06 billion ($663.5 million) in 2020 to N364.4 billion ($875.9 million) by the end of 2021, thanks to exceptional topline performance and sound cost-cutting strategies implemented by management.
Meanwhile, the group’s total assets and shareholders equity climbed from N2.02 trillion ($4.86 billion) and N875.95 billion ($2.1 billion) in 2020 to N2.39 trillion ($5.74 billion) and N965.37 billion ($2.32 billion), respectively.
The strong financial performance encouraged the board to suggest a dividend payout of N340.81 billion ($819.2 million) to its shareholders, equating to a dividend payment of N20 ($0.0481) per share.
This marks a 25-percent increase over the N16 ($0.0384) per share dividend given to the cement company’s shareholders in 2020, with Dangote being the dominant stakeholder.
