Dangote Cement shareholders have unanimously authorized the company to undertake a share buyback of up to 10% of its issued shares, according to a resolution passed at the company’s Extraordinary General Meeting held in Lagos.
The share buyback is expected to improve the company’s return on equity and shareholder value, with the goal of facilitating the company’s future long-term growth.
The approval, which was given with 100% approval from the shareholders, follows the company’s recent 13th Annual General Meeting (AGM) at which shareholders commended the company’s management for its impressive performance despite the economic challenges of the year.
At the AGM, shareholders also approved a dividend of N20 per share for the year ending December 31, 2021, an increase of 25% over the previous year’s dividend of N16.00 per share.
In the year under review, Dangote Cement achieved its highest profit before tax in its history at N538.4 billion.
The company also recorded group volumes of 29.3 million tons, an increase of 13.8% over the previous year.
This success was due in part to strong cost control measures, which helped the company achieve exceptional EBITDA of N684.6 billion, an increase of 43.2%.
Chairman of the company, Aliko Dangote, commented on the company’s success, saying, “Over the last decade, Dangote Cement has recorded exponential growth across all areas. Group volumes are now at almost 30 million tons, our capacity has tripled to 51.6 million tons and we export cement from five countries across Africa.”
“As the volatile global environment propels us into a new era of uncertainties, we are fortunate that the last two years have taught us resilience, adaptability, and grit. These values are what we need to face in unpredictable times in the future. Dangote Cement remains the leading cement company in Africa, well-positioned for a positive and sustainable future. We are resolute in transforming Africa while creating sustainable value for our stakeholders,” Dangote added.
The share buyback and dividend increase are both evidence of the company’s commitment to maximizing shareholder value.
Shareholders at the Extraordinary General Meeting also authorized the amendment of the company’s Articles of Association to reflect any changes in the company’s share capital following the share buyback.
