Dangote Cement crosses N13trn in market cap
As the equities market maintained its positive momentum, Dangote Cement Plc on Monday crossed the N13trilliion in market capitalisation on the floor of the Nigerian Exchange Limited (NGX) as investors’ demand persisted.
The price on Monday gained N1.17trillion in market capitalisation when the stock price gained N68.90 or 9.93 per cent close on Monday at N763 per share from N694.10 per share it closed trading.
The cement manufacturing company last week makes history to becoming the first listed company on Exchange to cross the N10 trillion market capitalisation.
The stock price of the cement manufacturing company had increased by 9.99per cent or N53.80 per share to close at N592.60 per share from N538.80 per share the stock opened for trading.
So far in 2024, the stock price of Dangote Cement has appreciated by 139per cent or N443.1 per share Year-till-Date (YtD) growth from N319.9 per share it closed for trading in 2023.
This means the market capitalisation of Dangote Cement YtD increased from N5.45trillion it closed in 2023 to N13trillion as of January 29, 2024, translating into N7.55rillion investors gain this year.
The positive momentum of Dangote Cement’ stock price commenced when it was announced to capital market community that Nigeria’s billionaire investor, Mr. Femi Otedola has acquired some stake in the cement company.
Otedola in a statement said the recent acquisition of shares in Dangote Cement a strategic investment that underscores his confidence in Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses that contribute to Nigeria’s economic resilience.
Otedola’s investment aligns with his vision of long-term wealth preservation and the belief that shareholders should be the primary beneficiaries of a company’s success.
“Dangote Cement’s unique position with two export terminals offers a substantial opportunity to earn foreign exchange, crucial for Nigeria’s economy. This, along with the company’s pan-African presence, makes it an ideal investment choice,” Otedola said.
Dangote Cement’s track record of dividend payments, exceeding N2.1 trillion in recent years, and its commitment to sustainable business practices resonate with these principles. Otedola’s investment strategy prioritizes companies that are well-managed, have strong governance, and operate under the principle that no individual should be larger than the company.
“In my investment decisions, I focus on long-term wealth preservation and ensuring shareholders are the ultimate beneficiaries of a company’s success,” Otedola stated. “Companies like Dangote Cement, which consistently deliver value to their shareholders, are fundamental for sustainable economic growth. My investment reflects my belief in its capacity to continue providing significant returns and my commitment to businesses that prioritize their shareholders.”
With about 29 per cent increase in revenue to N1. 51trillion in nine months of 2023, Dangote Cement reported N404. 89 billion profit before tax, representing an increase of 20.5 per cent from N335. 9billion reported in nine months of 2022.
The Cement maker reported N277.55billion profit in nine months of 2023, an increase of 30.2 per cent from N213.10 billion reported in nine months of 2022.
Dangote Cement’s net exchange loss on foreign-denominated transactions, hike in production cost of sales, finance cost and selling and distribution expenses impacted negatively on the company’s PBT as the combined four indicators hits N1.16tillion in nine months of 2023 from N873.67 billion in nine months of 2022.
Speaking on the results, Chief Executive Officer, Dangote Cement, Mr. Arvind Pathak, in a statement said, “this positive nine-months result is a combination of our strong value proposition, improved operational efficiency and a sustained drive to contain cost amidst an accelerating inflationary environment. We achieved double-digit growth in Group revenue at N1.51trillion, while EBITDA rose to an all-time high of N662.8billion, up 28.5 per cent.”
“Again, we continue to show the strength in the diversity of our operations. Our pan-African operations generated a record revenue and EBITDA growth of 103.9 per cent and 255.4 per cent, respectively, contributing 41.9 per cent to Group volumes.
“This unprecedented growth was driven by sustained demand across our countries of operation. We will continue to explore emerging opportunities and export strategies around the region to further consolidate the Group performance, Pathak added.
Pathak concluded, “Looking ahead, we are at the final stage in the completion of our 1.5Mta grinding plant in Cote d’Ivoire, having commissioned our 0.45Mta Takoradi plant in the first half of the year. We are focused on improving our value proposition, anchored on our promise to deliver strong and superior cement to our unwavering customers. I am very pleased with the direction of our business and confident we will finish the year strong.”
