Photo: Billionaire Dangote loses N351bn under 6 hours
Africa’s richest man, Nigeria’s Aliko Dangote,,on Tuesday lost 9.05% of his wealth after investors dumped his company’s shares following a decline in the earnings of the foremost cement manufacturer.
The company had reported that its revenue grew 10.3% in Q2 2022, after generating N394.85 billion between April to June, surpassing the N357.89 billion reported during the same period last year.
This growth wasn’t enough to save Dangote Cement’s net profit, as profit after tax dropped by 34.9% to N66.25 billion in the second quarter of 2022, failing to surpass the N101.92 billion the company recorded in Q2 2021.
With the decline in net profit, from which shareholders are paid dividends, investors confidence depreciated further on Tuesday, as they engaged in a sell off that dragged Dangote Cement share down from Monday’s N265, to N241 .
That was after the capital market priced the stock low, with the sell off reducing Dangote Cement’s share value.
This culminated in the N351.57 billion loss after trading hours, with his investment in the firm dropping from N3.88 trillion to N3.53 trillion.
The loss is part of the company’s larger sum of N408.97 billion, that it lost on Tuesday.
The development therefore dwindled Dangote’s market capitalization from N4.51 trillion. to N4.10 trillion.
