Aliko Dangote's Dangote cement has seen an impressive 2023
Dangote Cement Plc., the multinational cement giant, majority owned by Africa’s richest man, Aliko Dangote, has reported impressive financial results for the year 2023.
The company’s profits rose by 19 percent to more than $280 million, despite facing a tough macroeconomic and operational environment that affected earnings across the country.
According to its financial report, Dangote Cement saw a significant increase in profits, from N382.31 billion ($236.3 million) in 2022 to N455.58 billion ($282 million) in 2023, consolidating its leadership position in Nigeria and the broader African market.
The remarkable growth in profit was mainly driven by a 36.4 percent increase in revenue, from N1.61 trillion ($995.4 million) in 2022 to N2.21 trillion ($1.37 billion) in 2023. Dangote Cement’s revenue thrived, thanks to the company’s strategic initiatives and market dominance.
The group’s earnings also benefited from a lower tax expense in 2023. Dangote Cement paid a total tax of N97.5 billion ($60.3 million) in 2023, a notable decrease from the N141.7 billion ($87.6 million) paid in the previous year.
This performance is also reflected in Dangote Cement’s balance sheet, with total assets increasing from N2.61 trillion ($1.61 billion) as of Dec. 31, 2022, to N3.94 trillion ($2.44 billion) as of Dec. 31, 2023.
Moreover, retained earnings increased from N969.48 billion ($599.4 million) to N1.098 trillion ($678.9 million), demonstrating the company’s financial strength.
As the largest cement producer in Sub-Saharan Africa, Dangote Cement has an annual production capacity of 55 million tonnes across 10 countries.
The recent establishment of a six-million-tonne plant in Itori, Ogun State, shows the company’s commitment to increasing 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 end 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.
ID/MA
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