Lagos-based brand and marketing research firm, Top 50 Brands Nigeria, has named the Dangote Group as Nigeria’s most valuable brand. Every year, the firm selects top brands in Nigeria; those that have gained significant equity over time with good market share; brands that are strong enough to establish a natural advantage over their rivals; brands that create value by delivering on their promises and those that inspire enduring affections from their customers.
During the public presentation ceremony in Lagos, Taiwo Oluboyede, Chief Executive of Top 50 Brands, said the brands were rated using the Brand Strength Measurement (BSM) model. “In the selection and rating of the 50 top brands, we used the Brand Strength Model. It is a model that measures a brand’s ability to deliver its promise to the consumers from the consumer’s point of view,” he said.
“The model uses basic qualitative elements, including a survey to determine this. It starts with a test of people’s knowledge and affinity with brands operational in Nigeria. We had a survey called ‘Top on the mind’ where people tell us brands that easily come to their mind or they can recall,” he added. Other variables in the model test brand quality, innovation, online engagement, national spread and corporate social responsibility. All these are aggregated into the model and the resultant outcome separates the top brands. In a way, the model also measures weakness.
Dangote Group, a fully made in Nigeria brand is owned by Alhaji Aliko Dangote. He started The Dangote Group as a micro trading firm in 1977 after studying business in the Al Azhar University in Cairo, Egypt. The brand has been able to earn its reputation as the most valuable brand in the country through years of hard work, perseverance and belief in the potential of the Nigerian market. The micro trading company has grown into a multi-billion dollar conglomerate delivering quality products and providing excellent business services.
Regarded as one of Nigeria’s most diversified business conglomerate, the Group’s businesses include food processing, cement manufacturing and distribution, sugar and salt manufacturing, refining and distribution and pasta manufacturing and distribution. The company is also into the production and distribution of food seasoning, vegetable oil refining and distribution, tomato paste manufacturing and distribution, transportation, ports management, haulage and real estate. The group is also building an ultra modern crude oil refinery and petrochemical production plant where they hope to manufacture and distribute fertilizers.
Currently, Dangote Group’s largest revenue comes from its cement manufacturing and distribution chain with Dangote Cement being Nigeria’s largest cement producer with three plants in the country. In March, the company announced a revenue of N805.6 billion for the financial year ended December 31, 2017, which showed a 31 percent increase in comparison to the N615.1 billion achieved in the corresponding period of 2016.
According to results released by the Nigerian Stock Exchange (NSE), Dangote Cement profit before tax rose by 60.1 percent to N298.6 billion from N180.9 billion in 2016. Also, profit after tax grew by 43 percent to N204.2 billion, from N142.9 billion posted in 2016.
Other companies of the Group quoted on the floor of the NSE also witnessed significant growth in the year in review. Revenue for Dangote Flour Mills increased from N105 billion in 2016 to N125 billion. Profit before tax rose massively from N11.8 billion in 2016 to N22.4 billion, as did the profit after tax from N10.5 billion in 2016 to N15 billion.
Dangote Sugar also saw an increase of 20.4 percent in total revenue from N169.73 billion in 2016 to N204.42 billion. It posted a profit before tax of N53.59 billion compared with N19.61 billion achieved in 2016, signifying an increase of 173 percent. Profit after tax appreciated by 176 percent to N39.78 billion against N14.39 billion reached in the same period of 2016.
The Group controls a majority stake in NASCON Allied Industries Plc. The financial statements of NASCON showed a massive improvement in all indices; revenue increased from ₦18.2 billion in 2016 to ₦27 billion. Profit before tax jumped by over 100 percent from ₦3.5 billion in 2016 to ₦7 billion. Profit after tax also rose greatly from ₦2.4 billion in 2016 to ₦5.3 billion.
These results represent the biggest in the last five years of the company’s history. It is safe to say that with such performances by companies controlled by the Dangote Group, the brand is well deserving of being named the most valuable brand in Nigeria.