By NKIRUKA NNOROM

Following its aggressive expansion strategy geared towards establishing its presence in African markets, Dangote Cement Plc, DCP, last week said that it has concluded plans to expand its operation to Tanzania.

Chairman of   Dangote Cement Plc, Alhaji Aliko Dangote, who made the disclosure at the 4th Annual General Meeting, said that the ground work would be laid in the next one week, while two additional plants would be inaugurated in Nigeria in 2014.

According to him, the various expansions within and outside Nigeria would result to higher performance and increased returns for all stakeholders of the company.

As part of the plan, Dangote disclosed that DCP commenced the export of cement to Ghana last March as part of the company’s strategy to exploit the opportunities that abound in the West African sub-region, declaring that the company was clearly on the right path and was poised to for improved performance in 2013. Dangote assured the shareholders that given the huge investments the company is making, profitability would improve, which would in turn lead to more dividends for shareholders in the future

He said, “The future remains bright for us as we fast track our expansion projects both within and outside the country. The ban on the importation of cement has opened a new vista of opportunity for local manufacturers, who are expected to reap the inherent benefits soon.”

The company recorded a profit after tax of N149.632 billion, up from N120.952 billion in 2011 and recommended a dividend of N51 billion for shareholders. The dividend, which translated to 300 kobo per share, is 140 percent higher than the 125kobo paid in 2011.

Turnover increased from N241 billion to N285 billon, showing an increase of 18 percent.

“This is attributed largely to increase in sales volume from 8.66 million tonnes in 2012 to 10.32 million metric tonnes due largely to Ibese plant being operational,” he said.

On why the company paid only 300kobo as dividend out of the earning per share of 892 kobo in the year, Dangote said the company needed to plough back part of the funds into the business in pursuit of its expansion strategies.

Approving the dividend, the shareholders commended the board and management for the impressive results and the dividend payment.

Although the payment of the dividend was supposed to commence June 3, Dangote said given the cash position of the company and need to satisfy shareholders, the payment would commence on the AGM day.

“The company has the cash and there is no need to delay payment of the dividends. Shareholders, whose names appear on the register of the company as at May 3, will begin to receive their dividends immediately,” he said.