Connect with us


BIG STORY

BUSINESS: Investors Harvest 140% Return From Dangote Cement

Published

on

Investors who took positions in Dangote Cement’s stock in 2020 and exited June 31, 2023 harvested 140.26 per cent returns through capital appreciation and 11.11 per cent in H1- 23. This excludes dividend payment which has remained consistently impressive.

In response to the economic headwinds which erode working capital, many companies are ploughing back a larger portion of their profit, resulting in a slide in dividends to shareholders. But Dangote Cement maintained its dividend payment history. In 2022, it paid a N20.00 dividend per share, a gesture that has provoked renewed bids for the stock. And Kasimu Garba Kurfi, chief executive officer of APT Securities and Funds Limited attributes this to the previous government’s infrastructure development.

The growth in returns on capital invested is supported by the huge interest in the company’s solid earnings. In 2022, Dangote Cement grew revenue by 17.39 per cent to N1.62 trillion from N1.38 trillion in 2021. Profit after tax rose 4.94 per cent to N0.382 trillion from N0.364 trillion. During the same period, the company reported a rise in assets from N2.39 trillion in 2021 to N2.61 trillion.

This is in spite of the crippling cost pressures on companies’ toplines, leading to a slide in the bottom line. For Dangote Cement, the company had to contend with an increase in production cost which rose to N0.662 trillion from N0.551 trillion in 2021. Selling and distribution expenses increased to N0.295 trillion from N0.191 trillion.

In Q1- 23, the production cost of sales rose to N163.67 billion from N154.10 billion in Q1-22. Selling and distribution expenses increased to N68.71 billion from N60.68 billion in Q1-22.

The rise in cost is driven largely by the depreciation of the Naira against foreign currencies and the resultant increase in the cost of importing inputs.

Further escalating cost is the amount spent on diesel, distribution and taxation expenses. To contain costs inspired by raw material importation, grow margin and return to investors, the company sources large quantities of its limestone locally.

Asset managers said the stock has the potential to deliver stronger returns that beat inflation and the local market going by Dangote Cement’s Q1- 23 profit after tax of N109.50 billion, up from N105.85 billion in Q1-22.

Revenue growth is on the back of the previous government’s infrastructure and private sector investment in real estate assets and pledged by the current President’s campaign promise to toe the same path. The pledge to continue with investment in capital projects is expected to boost cement sales.

Dangote Cement’s strong capital base and cash flows offer the company opportunity to take up bigger ticket transactions and weather unexpected storms with its N2.61 trillion asset, N287.00 billion cash flow from operating activities and N283 billion cash and cash equivalent, at the end of the 2022 financial year. In Q1-2023, the company reported net cashflow of N115.70 billion and N2.69 trillion assets.

BIG STORY

NOVA Bank Achieves Global Cybersecurity Milestone With ISO 27032 Certification

Published

on

NOVA Bank has achieved a major milestone in its commitment to safeguarding customer data and digital operations by attaining the globally recognized ISO 27032 Cybersecurity Standard certification. This significant achievement positions NOVA Bank among the elite financial institutions in Nigeria with such a distinction.

The ISO 27032 certification focuses on fortifying cybersecurity measures, ensuring robust protection for data, systems, and online transactions amid an ever-evolving cyber threat landscape. In addition to this achievement, NOVA Bank is already certified in ISO 27001 for Information Security Management and BCMS 22301 for Business Continuity Management, further underscoring its dedication to operational excellence and security.

Speaking on the achievement, Acting Managing Director and CEO of NOVA Bank, Mrs. Chinwe Iloghalu, described the certification as a pivotal moment for the Bank and its customers.

“This certification underscores NOVA Bank’s unwavering dedication to maintaining the highest global standards in cybersecurity. As we continue to innovate with customer-centric retail products, cybersecurity remains at the heart of our operations. Our customers can rest assured that their data and transactions are protected by some of the most advanced security frameworks in the industry. Trust is built on security, and NOVA is committed to providing a secure, reliable, and innovative banking experience,” Mrs Iloghalu stated. The Bank’s Executive Director for Operations and Information Technology, Dr. David Isavwe, who also serves as the President and Chairman of the Board of Trustees for the Information Security Society of Africa, Nigeria (ISSAN), emphasized the broader implications of the certification.

“The ISO 27032 certification highlights NOVA Bank’s proactive approach to addressing cybersecurity challenges. It demonstrates our readiness to protect against evolving threats and our ability to adapt to the dynamic landscape of digital banking. This certification reinforces our commitment to delivering secure and uninterrupted services to our valued customers,” Dr. Isavwe remarked.

This milestone aligns with NOVA Bank’s overarching strategy of integrating cutting-edge technology with its trademarked Phygital model—seamlessly blending physical and digital banking experiences, while maintaining an unwavering focus on customer trust and satisfaction.

As the bank prepares to launch a series of innovative retail banking products, this certification highlights its dedication to prioritizing cybersecurity, ensuring a secure and seamless banking experience for all its customers.

Continue Reading

BIG STORY

JUST IN: Customs Hands Over 21 Stolen Vehicles To Canadian Government

Published

on

The Nigerian Customs Service (NCS) has transferred 21 stolen “Sport Utility Vehicles” (SUVs) and other assorted vehicles to the Canadian Government, following their recovery from various locations across the country.

 

More to come…

Continue Reading

BIG STORY

Former Kogi Governor Yahaya Bello Now In Our Custody — EFCC

Published

on

The Economic and Financial Crimes Commission (EFCC) has revealed that former Kogi State governor, Yahaya Bello, has been detained in the agency’s custody for allegedly misappropriating over N110 billion in public funds.

The EFCC stated that the former governor appeared at its headquarters after months of ignoring invitations and avoiding court summons related to fraud connected to his administration.

EFCC spokesperson, Dele Oyewale, on Tuesday said that Bello had been detained and would be questioned about the allegations against him.

According to reports, Bello responded to the EFCC’s invitation on Tuesday, arriving at the EFCC office with his lawyers, but without his successor, Governor Usman Ododo, who had reportedly been shielding him from arrest.

Continue Reading



 

Join Us On Facebook

Most Popular