NIGERIA: Dangote Cement Laments High Cost of Production, Pays N7 Dividend

Dangote Cement Plc has decried the high cost of production, which it explained has resulted to the rise in the price of cement in the country, even as it rewarded shareholders with a dividend of N7.00 per share for the financial year ended December 31, 2013.

Speaking at the company's 5th Annual General Meeting, AGM, in Lagos, the chairman, Alhaji Aliko Dangote, said " We never envisaged that the cost of production will rise to this extent when we said that the price of cement will fall , but as you can see, foreign exchange rate has gone up, the same with the price of gas, and diesel .

We even constructed some of the roads our vehicles ply, all in a bid to make sure we continue production. We will continue to do our best to ensure that we sell our product moderately; after all, the price of our cement is relatively cheaper when compared to our competitors.

You can now order our product through your computers. We hope to increase our market share in the short term by increasing the level of direct-to customer deliveries and competing on product superiority."

Continuing, he said "Between eight to 10 weeks, our company will pump in nine million tons of cement representing a growth of 45 percent to the market. We want to serve our shareholders by giving you better returns on your investment.

Trading remains robust in the country, and we have experienced a solid start to the year with demand up in all regions.

We have embarked on an initiative to improve the standard of cement sold in Nigeria and our belief is that 42.5 strength cement is the most appropriate for general use. We are working closely with industry consumers such as block makers to ensure widespread education as to its use."

Meanwhile, the shareholders who spoke at the AGM commended the Board of Directors and management for the impressive results recorded during the year under review.

The shareholders' association leaders, such as Dr. Farouk Umar, Chief Timothy Adesiyan, Chief Sola Abodurin, Mrs. Bisi Bakare, among others commended Dangote for its contribution towards the growth of the company as well as the economy.

According to them, " Dangote Cement has done well. The company is paying us a dividend of N7.00 per 50 kobo share, an increase of about 133 percent from what it paid last year.

The company's turnover improved from N285 billion to N371 billion in the financial year under review. The same for profitability; it increased from N146 billion in the previous year to N210 billion. So, we are very happy for the performance and hope to get higher dividend come next year."