Kayode Tokede
Regardless of the powerful working setting, three cement manufacturing firms in Nigeria have proposed N609.5billion as dividend pay out to their shareholders for the monetary yr ended December 31, 2023.
That is 30.3 per cent enhance when in comparison with N467.85 billion the three listed cement makers paid to shareholders in 2022 monetary yr.
The three cement manufacturing firms are: Dangote Cement Plc, BUA Cement Plc and Lafarge Africa Plc.
Evaluation of the businesses’ monetary outcomes confirmed that Dangote Cement Plc’s administration proposed a dividend of N30.00 per share in 2023 from N20.00 per share.
This interprets into N511.22 billion in 2023, a rise of fifty per cent from N340.8 billion in 2022 monetary yr.
The proposed N30.00 per share, dividend, in accordance with the corporate was according to the promise of Chairman, Dangote Cement, Aliko Dangote to enhanced return on Investments of shareholders.
For Lafarge Africa and BUA Cement, their administration proposed a dividend of N1.9 and N2.00 per share respectively, representing N30.6 billion and N67.7 billion their shareholders will take house for the interval beneath overview.
Capital market analysts have counseled the three cement producers for sustaining dividend pay out to shareholders amid macro financial headwinds.
Talking, the Vice Chairman, Highcap Securities Restricted, Mr. David Adnori expressed additional that the sector final yr witnessed extreme overseas alternate losses, but the administration acted prudential in decreasing value and enhancing on bottom-line of their quest to reward shareholders.
He added that the dividend declared was beneath these firms Incomes Per Share (EPS), “but the dividend must be applauded by shareholders because of financial system scenario within the nation.”
Commenting on Dangote Cement’s 2023 efficiency, analysts at Cordros Analysis stated, “Dangote Cement gross sales efficiency within the Pan African area was outstanding and we just like the enterprise’ resilience in guaranteeing profitability within the face of gradual gross sales in its Nigerian operations amid inflationary and forex pressures.
“For 2024, we envisage that Pan African gross sales will keep its uptrend whereas greater cement costs will stay the important thing driver of turnover in Nigerian operations. Moreover, we level to Dangote Cement’s prices controlling efforts, together with gasoline combine optimisation, shifting in direction of different fuels and gradual transition from diesel supply vehicles to full Compressed Pure Fuel (CNG) vehicles and imagine these initiatives will assist maintain margins within the close to time period.”
Commenting on the cement business, CardinalStone in a report defined that, “As Nigeria’s cement business displays on a difficult 2023, characterised by demand-stifling occasions just like the money crunch orchestrated by a poorly executed forex redesign coverage, the fabric forex devaluation, and bouts of heavy rainfall, its hope for a gradual restoration in 2024 feeds off the return to relative macroeconomic normalcy and early good points from powerful coverage reforms.
“In 2024, the Nigerian cement business is anticipated to learn from renewed authorities give attention to infrastructure growth and building tasks, which might stimulate demand for cement merchandise. With elevated finances allocations to essential sectors and impressive infrastructure initiatives (N1.32 trillion to infrastructure, which represents 5 per cent of the overall FG 2024 finances), the development business is prone to expertise a resurgence. Cement producers, in response, are starting to recalibrate their manufacturing methods within the type of capability growth and improved effectivity to fulfill the anticipated rise in demand.
“Whereas challenges might persist, the outlook for Nigeria’s cement business in 2024 is considered one of cautious optimism, with potential progress alternatives rising amidst the restoration part.”
The Group Managing Director, Dangote Cement, Arvind Pathak in an announcement stated, “This optimistic full-year final result is a mixture of the energy within the variety of our operations throughout Africa and our sustained drive to comprise value amidst an accelerating inflationary setting.”
“Regardless of the difficult macro financial situations, 2023 was one more testomony to the effectiveness of our diversification technique. Our various operations acted as a cushion, offering resilience to country-specific dangers. Pan-African volumes have been up 12.7 per cent and now account for 41.2 per cent of Group quantity. Consequently, pan-African income elevated by a document 123.2 per cent to N925.9 billion, whereas EBITDA surged by over four-fold to 263.7 billion.”
He added, “In response to the heightened inflationary setting, we applied new and revolutionary enterprise methods that helped to drive up revenues, comprise prices, and shield margins. These initiatives included gasoline combine optimisation, propelling using different fuels to interchange costlier fossil fuels. We additionally started the phased transition from diesel energy vehicles to full CNG vehicles.
“Wanting forward, following the commissioning of our 0.45Mta grinding plant in Takoradi, we’re specializing in our “export to import” technique in West and Central Africa, whereas concurrently optimising property in Japanese Africa. Our technique stays centered on enhancing our price proposition by way of the manufacturing of high-quality cement and delivering sustainable worth to our stakeholders.”
The CEO of Lafarge Africa, Lolu Alade-Akinyemi stated, “The basics of our enterprise stay sturdy. Regardless of extraordinarily difficult macroeconomic head winds, we grew the highest line by 8.6% and improved Working Margin from 22.6per cent to 25.3per cent in 2023. Within the face of very materials FX devaluation losses and better efficient tax fee, Revenue After Tax declined YoY by 4.7per cent.
“Our efficiency was largely impacted by spiralling inflation and unprecedented Naira devaluation, with the attendant stress on power and provide chain prices.
Regardless of these challenges, we proceed to keep up a powerful free money move place and a powerful steadiness sheet, positioning us for sustainable progress over the medium to long run. We’re dedicated to delivering sustainable worth to all stakeholders within the coming years, as we now have accomplished traditionally.”
The Managing Director/ CEO, BUA Cement, Mr. Yusuf Binji, stated, “Clearly, the working setting in 2023 was difficult, given the completely different headwinds confronted with in the beginning of the yr and particularly with the devaluation of the Naira. Throughout the yr, we launched the maiden version of the BUA Cement Scratch and Win promo., amongst different initiatives, which noticed BUA Cement additional enhance its share of the market and resulted to a 27.4per cent rise in revenues to N460 billion from N361 billion within the prior yr.
“As well as, we chilly commissioned the brand new 3mmtpa strains on the Sokoto and Obu Vegetation, activated a brand new 70MW gasoline energy plant in Sokoto and eagerly await the activation of the 70MW gasoline energy plant at Obu through the first quarter of 2024. Other than these, we took supply of over 500 vehicles to help our distribution actions, which additional deepened our market presence.”
