Dangote Assures Shareholders of Higher Returns

President, Dangote Group, Aliko Dangote

By Goddy Egene

The Chairman of Dangote Flour Mills Plc, Alhaji Aliko Dangote, has assured shareholders of the company and sister firms listed on the Nigerian Stock Exchange (NSE) of improved returns on their investments in the years ahead.

Dangote gave the assurance at the Annual General Meeting (AGM) of Dangote Flour Mills held in Kano last Thursday, saying the N76.24 billion dividend the four companies paid for the year ended December 31, 2010, would be improved upon.

The four companies are: Dangote Cement Plc, Dangote Sugar Refinery Plc, Dangote Flour Mills Plc and National Salt Company of Nigeria (NASCON).

Before last week, three of the companies had paid a dividend of N74.34 for the 2010 financial year. However, shareholders of Flour Mills approved the N1.9 billion proposed by the directors at the AGM last Thursday, thus bringing the total dividend to N76.24 billion, compared to N60.21billion paid in 2009.

Market analysts said the total dividend paid out by the Dangote companies was very significant considering the fact that many quoted companies could hardly made profit owing to the harsh economic and operating environment.

Going by the annual reports and accounts of the listed companies, Dangote Cement paid N65.84 billion, Dangote Sugar paid N7.2 billion, while NASCON paid out N 1.3 billion dividend.
Excited shareholders showered praises on the management of the companies under the group for rewarding them bountifully despite the economic down turn in the capital market.
Chairman of Shareholders’ Trustees Association of Nigeria Alhaji Mukhtar Mukhtar described the dividend pay-out as remarkable considering the fact some companies were unable to do so as result of unfavourable investment climate in Nigeria.

“We are encouraged by Alhaji Aliko Dangote. In addition to the dividend, his companies have been creating jobs and feeding Nigerian families. All Nigerians should emulate him,” Mukhtar said.

Addressing shareholders of Dangote Flour Mills, Dangote, said going forward, the company would perform better as its expansion project to enlarge its manufacturing and packaging facilities, which started some years back, was almost completed.

“Our dedicated plant for production of our wheat meal brand Alkama and Danvita would soon be ready for commissioning any moment from now.

This would no doubt, tremendously boost our top line growth in year 2011 as plans are already in place to massively launch the products and increase the distribution networks to all the hinterlands,” he said.

He added that the plan to commence direct and indirect export into Chad, Cameroon, Senegal and Liberia was already yielding fruits, disclosing that “We intended to intensify efforts to deepen and strengthen the business relationship already established along the West Africa Coast.”