Dangote Cement Plc on Tuesday declared a revenue of N491.7 billion for the year ended December 31, 2015, showing an increase of 26 per cent from N391.6 billion in 2014. Profit before tax was N188.3 billion as against N184.7 billion, while profit after tax rose from N159.5 billion to N181.3 billion.
Based on the performance, the directors recommended a dividend of N8.00 per share, showing an increase of 33 per cent above the N6.00 per share.
Dangote Cement, controlled by Africa’s richest man, Aliko Dangote, is seeking to boost sales and protect market share in Nigeria amid slowing economic growth, while rapidly expanding elsewhere in sub-Saharan Africa. The company cut prices in Nigeria in September, to boost consumption and compete with imports, and said last month it will build two new plants in the country.
“New factories performed very successfully across Africa, gaining significant market share against long-established incumbents,” Chief Executive Officer of the company Onne van der Weijde said: “In our home market of Nigeria we increased sales by 3.2 per cent against the worst economic crisis the country has faced in many years, which demonstrates that the Nigerian market is very robust.”
Dangote last year announced plans to add 25 million metric tons of capacity across African countries including Ethiopia, Kenya and Zambia, as well as a new plant in Nepal. The company has last month announced new nine million metric tons per annum plants being constructed in Okpella and Itori in Edo and Ogun states in Nigeria.
When Dangote paid N6.00 last year, shareholders hailed the performance, saying it was highly encouraging given the challenging environment.
For instance, the President, Association for the Advancement of Rights of Nigerian Shareholders, Dr. Farouk Umar, commended the board and management of the company for the steps they had taken to ensure the sustained growth of the company.
Dangote had told the shareholders that 2014 was a year in which the company achieved significant progress in its goal to become a truly pan-African manufacturer and distributor of cement.
He had expressed optimism about the company’s future, saying “I am happy that we achieved many milestones across Africa and made the important transition from building cement plants to making cement. We are well on our way to becoming a global and respected cement producer, operating in some of the most exciting markets in the world.”