Dangote Cement Plc shares gained 9.99per cent on Monday to close with a share price of N592.60, thus reaching a market cap of N10.095 trillion, becoming the first Nigerian company to hit the historic milestone.
In 2024, Dangote Cement has recorded a remarkable performance in the equities market, with a year-to-date return of 85.2per cent, moving from a share price of N319.9 at the start of 2024 to N592.6 at the close of trading today.
The company has also recorded capital gains of N4.644 trillion, as its share price appreciated from N5.451 trillion at the start of 2024 to N10.095 trillion, as of January 22, 2024.
At the end of 2023, Dangote Cement ranked third on the list of the companies with the highest market capitalization in the NGX, behind Airtel Africa and MTN Nigeria with market caps of N7.09 trillion and N5.543 trillion respectively.
However, the company has outperformed these companies, with Airtel Africa and MTN Nigeria having market caps of N7.52 trillion and N6.07 trillion respectively as of January 22, 2024.
With a market capitalization of about N10.095 trillion ($11.19 billion; exchange rate of N902.45/$), Dangote Cement has propelled itself into the list of the largest companies in Africa based on market capitalization.
It is also the only Nigerian company among the top ten largest African companies based on market cap, with the rest being South African companies.
Dangote Cement Plc is the fifth largest company in Africa based on market cap, behind Capitec Bank which has a market cap of $12.4 billion.
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.