Dangote Group subsidiaries pay N59bn dividend in 2012

Shareholders of three Nigerian Stock Exchange (NSE) listed subsidiaries of the Pan-African conglomerate, Dangote Group, are currently basking in the euphoria of good harvest as the companies made bumper returns on their investments.

Aliko Dangote

As at end of December, 2012 fi nancial year, Dangote Cement, Dangote Sugar Refinery and National Salt Company of Nigeria (NASCON) altogether paid a jumbo N59 billion as dividends.

The Group’s flagship, the Dangote Cement led the pack with a total dividend payout of N51 billion, Dangote Sugar rewarded the shareholders with N6billion while Dangote Salt (NASCON) paid out N2.3 billion as dividends.

As for Dangote cement, the dividend approved by the shareholders at the 2012 Annual General Meeting (AGM), held in Abuja translated to an unprecedented 300 kobo per share.

As for Dangote Sugar Refi nery enriched shareholders with 50 kobo for every one ordinary share of 50 kobo.

NASCON on its part paid each shareholder 90 kobo for every 50 kobo ordinary share held.
A statement from the Group at the weekend said the dividend payout from the subsidiaries are signifi cant in many respect, given that many quoted companies could not pay good dividends while some others recorded either declining profi ts or outright loses.

Elated shareholders showed encomiums on the board and management of the business units for recording sterling performances in the financial year under consideration, despite the inclement operating environment.

Reacting to the dividend payout, Chairman, Progressive Shareholders’ Association of Nigeria, Boniface Okezie attributed the performance of the companies to the expertise and diligence on the part of the board and management.

He commended the board for recommending good dividends as the dream of any investor is to see share prices appreciate and receive more dividends.

Chairman of the three subsidiaries, Aliko Dangote was quoted as lamenting on each occasion of the subsidiaries respective AGM, the usual challenges of the Nigeria n business environment with energy in particular and other issues such as poor infrastructure, uncoordinated tax administration among others playing roles in preventing the manufacturing sector from reaching its full potential.

He said however that the companies were able to record good performance despite the exhibition by the global fi nancial system of signs of deep stress, because the management was focused and determined to make the best use out of the bad situation.

“However, the board and management overcame these difficulties by responding to the challenges through strategic efforts and are therefore able to present the good results”, the statement quoted Dangote as saying.

A review of Dangote Cement annual reports for the year ended December 31, 2012 showed that the company recorded a turnover of N298.45 billion in 2012, indicating a 23.63 per cent increase over N241.41 billion recorded in the corresponding period of 2011.

The company’s profi t before tax grew by 19.22 per cent to N135.65 billion from N113.78 billion in 2011. Profi t after tax stood at N151.93 billion, up by 25 per cent from N121.4 billion in 2011.

Dangote Cement recently laid the foundation stones for the construction of its new $500m cement plant in the East African country of United Republic of Tanzania. The new plant with capacity for 3 million metric tons per annum will provide thousands of jobs for the locals.

Source: National Mirror