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Dangote Cement pays N30.98bn interim dividend

Dangote Cement Plc (DCP), a member of the Dangote Group has announced an interim dividend of N30.98 billion for the period ended September 30, 2010. The interim dividend is part of the group’s strategies of enhancing and growing shareholders’ value through consistent dividend payment.

The interim dividend also fulfills the promise by the directors of the company to pay an interim dividend to shareholders. Dangote Cement resulted from the merger between Dangote Cement Plc and Benue Cement Company Plc (BCC). The merger created the biggest company listed on the Nigerian Stock Exchange (NSE).

In the review period, the enlarged company reported a turnover of N146.56 billion. According to the unaudited financial results, turnover rose by N55.26 billion or 37.71 per cent when compared to turnover value of N91.30 billion posted in the corresponding period of 2009.

A review of the financial results indicated that Profit Before Tax (PBT) rose by N30 billion or 39 percent to N76.93 compared to N46.93 billion recorded in the corresponding period of 2009. Profit after tax (PAT) was on the same upward swing as it rose by N30.16 billion or 40.05 percent to N75.30 billion in contrast to N45.14 billion at the preceding year.

With the payment of N30.98 billion interim dividend, investors in the companies under the Dangote Group that are listed on the Exchange received a total dividend of N60.21 billion.

Dangote Group, the biggest business conglomerate in sub_Saharan Africa, has Dangote Flour Mills Plc, Dangote Sugar Refinery Plc, Dangote Cement and National Salt Company of Nigeria (NSACON) as its subsidiaries that are listed on the NSE.

While many companies have not been able to declare dividend due to their poor financial performance as a result of the difficult operating environment, companies under the Dangote stable have enhanced the liquidity position of shareholders with a dividend of N60.21 billion.

According to the annual reports and accounts of the listed companies, Dangote Sugar Refinery paid a dividend of N12 billion, which translates into N1 per share, legacy BCC paid N3.9 billion, which also translates into a dividend of N1 per share. NASCON paid a dividend N1.325 billion amounting to N0.50 per share, while Dangote Flour Mills paid N4 billion translating into N0.80 per share. Market analysts said while there are many thriving businesses that have yet to go public, the decision of the Dangote Group to list its companies on the NSE is a commendable one that is already enriching investors’ pockets.


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