Dangote Cement has announced a rise in pre-tax profit to N118.28 billion (US$750.70 million) in 2011, compared with N117.84 billion in the previous year. Operating profit climbed 13.9% to N117.33 billion, while profit after taxation also surged to N125.48 billion.
The company also declared a dividend of 125 kobo per share, as well as one bonus share for each ten held. Turnover increased 16% to N235.70 billion compared to N202.57 billion, while gross profit was up 14.69% to N139.08 billion.
Dangote Group’s President, Alhaji Aliko Dangote, assured shareholders of good returns on their investments. He stated that the significant contributions of the new line in Obajana and commissioning of the 6 million t Ibese Cement plant this year, will positively affect the company’s turnover and returns on shareholders investments.
Cement capacity expansion
Dangote Cement is doubling its cement capacity this year to 21 million t, with the aim of reaching 43 million t in 2015. In addition to its three cement plants in Nigeria, where it has a 70% market share, Dangote Cement also has contracts to construct cement plants in eight other African countries, including Senegal, South Africa and Ethiopia.
A boost in infrastructure spending is driving cement demand in Africa. The continent is currently experiencing fast growth, with the IMF forecasting that regional economies will expand by 5.75% this year.
London Stock Exchange listing in 2013
Meanwhile, Dangote Cement has announced plans to list on the London Stock Exchange in 2013. Mr Dangote has confirmed intensions to float a 20% stake in Dangote Cement to finance its rapid expansion.
Reports suggest that Morgan Stanley and JPMorgan have been appointed as co-leads for the London share issue and that Dangote Cement will meet corporate government requirements for a premium listing. It has also been suggested that Mr Dangote would give up his current role as Chairman.
Edited from various sources by Callum O’Reilly.
Read the article online at: https://www.worldcement.com/africa-middle-east/05042012/dangote_cement_profit_rise_2011_list_london_stock_exchange/