Aliko Dangote, the company’s founder, lost -9.05% of his investment in Dangote Cement on Tuesday as a result of investors selling the stock after the manufacturer’s profits fell short of expectations.
After generating N394.85 billion between April and June—a higher amount than the N357.89 billion recorded for the same time in the previous year—Dangote Cement claimed that its revenue increased by 10.3% in the second quarter of 2022.
Analysis revealed that this expansion was insufficient to protect Dangote Cement’s net profit, as the company’s profit after tax fell -34.9% to N66.25 billion in the second quarter of 2022, falling short of the N101.92 billion it reported in Q2 2021.
Investor confidence declined further on Tuesday as a result of the reduction in net profit, from which shareholders receive dividend payments; after the capital market valued the stock low, Dangote Cement share fell from N265, where it was on Monday, to N241.
According to analysis, billionaire Aliko Dangote lost N351.57 billion after trading hours as a result of the sell-off, which caused the value of his investment in the company to fall from N3.88 trillion on Monday to N3.53 trillion.
The company lost a total of N408.97 billion on Tuesday, bringing its market capitalization down from N4.51 trillion to N4.10 trillion, including the N351.57 billion.
