In 2023, Dangote Cement further solidified its position as the dominant player in Nigeria’s cement industry, capturing 71.8% of total industry revenue and 79.1% of profit after tax. This performance marks a significant increase from 2022, when the company held 68.8% of industry revenue and 71.2% of profits, reflecting its continued growth despite broader economic challenges.
Conversely, other major players in the sector, Lafarge Cement and BUA Cement, saw a decline in their market share in 2023. Lafarge’s revenue share dropped from 15.9% in 2022 to 13.2% in 2023, and its share of profit fell from 10% to 8.9%. Similarly, BUA Cement‘s revenue share decreased slightly to 15% from 15.34%, while its share of profit also diminished significantly from 18.8% to 12.1%.
Dangote Cement’s Financial Performance
Dangote Cement reported revenue of N2.208 trillion in 2023, a 36.44% increase compared to N1.62 trillion in 2022. Despite a sharp rise in the cost of sales—up by 51.80% due to the increasing cost of diesel, crude oil, and the impact of the naira’s devaluation—the company managed to maintain profitability. The company’s gross profit grew by 25.8%, reaching N1.2 trillion, up from N955.43 billion in the previous year. Profit after tax also saw an increase, rising by 19.2% to N455.58 billion, up from N382.31 billion in 2022.
Dangote Cement has announced a final dividend of N30 per share for 2023, representing a 50% increase over the N20 per share dividend paid in 2022. The dividend payment is scheduled for late April 2024, subject to shareholder approval.
Dangote’s Personal Dividend
With a substantial stake in the company, Aliko Dangote, Africa’s wealthiest individual, is set to earn N439 billion in dividends from his direct and indirect holdings in Dangote Cement. Dangote owns 0.16% of the company directly and a controlling 85.8% indirectly through Dangote Industries Limited. As a result, he will receive N829.28 million from his direct shareholding and N438.64 billion from his indirect holdings.
Lafarge and BUA Cement Performance
Meanwhile, Lafarge Cement recorded a modest revenue increase of 8.64%, reaching N405.5 billion in 2023, compared to N373.24 billion in 2022. Despite this, profit for the year decreased by 4.7%, falling to N51.14 billion from N53.65 billion the previous year.
BUA Cement posted revenue growth of 27.4%, bringing in N459.99 billion compared to N360.99 billion in 2022. However, profit before tax and profit after tax saw significant declines. Profit before tax dropped to N67.23 billion from N120.15 billion, while profit after tax fell by 31.24% to N69.45 billion, down from N101.01 billion in 2022. Despite the drop in profits, BUA Cement announced a final dividend of N2 per share, with payments scheduled for 29th August 2024.
