Dangote Leads as Top Cement Manufacturers Pay Shareholders N609.5bn Dividends after Price Slash
- The three leading cement manufacturing companies in Nigeria have announced a 30.3% increase in dividend payments to shareholders
- Dangote, BUA and Lafarge Africa announced N30, N20, and N1.9 per share as dividends to shareholders
- The companies stated that the severe and challenging business environment heavily impacted them
Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.
Despite the challenging business environment, Nigeria’s three cement manufacturers have proposed N609.5 billion as a dividend payout to shareholders for the year ending December 31, 2023.
The dividend payments are a 30.3% increase compared to the N467.85 billion the companies paid to shareholders in 2022.
Source: Facebook
Dangote leads top manufacturers
The three top producers are Dangote, BUA, and Lafarge Africa.
The breakdown of the companies’ financial results showed that Dangote Cement proposed a dividend of N30 per share in 2023 from N20 per share in the previous year.
The increase translates to N511.22 billion in 2023, representing a rise of 50% from N340.8 billion in 2022.
The dividend payment by Dangote Cement aligns with the promise of the chairman, Aliko Dangote, to boost the return on investments for shareholders.
Lafarge and BUA cement proposed a dividend payment of N1.9 and N2.00, respectively, representing N30.6 billion and N67.7 billion, which their shareholders will get for the review period.
The group managing director of Dangote Cement, Arvind Pathak, said the increase was positive for the full-year outcome and combined the company’s sustained drive to contain costs amid growing inflation in the country.
BUA discloses why price slash didn't work
Lolu Alade-Akinyemi, Lafarge Africa CEO, said that the company’s business fundamentals remained strong despite the challenging operating environment.
ThisDay reports that the MD/CEO of BUA Cement, Yusuf Binji, reiterated the challenging environment and stated that the company has launched various initiatives to increase its market share.
Also, the company embarked on a price slash, which stakeholders say did not work as marketers refused to sell the product at the approved price of N3,500.
The company revealed in a recent statement that the price could not work due to market forces.
Recall that the manufacturers agreed in a meeting with the Nigerian government to slash the price of the products to N7,000 per bag.
Cement manufacturers declare N710bn profit
Legit.ng reported that Nigeria’s three biggest cement manufacturers - Dangote, BUA, and Lafarge Africa - recorded about N710.3 billion in the past year as hikes in sales and higher prices reduced pressures on operations.
The three manufacturers, however, incurred huge forex losses, which affected their net profits.
The firms’ total sales increased from N2.35 trillion in 2022 to N3.076 billion in 2023. Their operating expenses rose from N799.79 billion in 2022 to N910.99 billion in 2023.
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Source: Legit.ng
