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Dangote Cement releases impressive result for Q4-17, proposes N10.50 dividend

The management of Dangote Cement Plc has released its 2017 Full Year results showing group revenue stood at N805.6 billion (+31%  as against 2016) and Profit After Tax (PAT) of N204.3 billion (+43% as against 2016) are behind Bloomberg consensus’ N810.4 billion and N249.9 billion, respectively.

EBITDA anchored at N388.2 billion, +51% as against the 2016 figure, and ahead of the previous year’s N380.3 billion

Others like sales volume recorded 21.9 million tonnes lower by 7% as against 2016FY, and behind the 22.3 million tonnes estimated by analysts.

A dividend per share of N10.50 was proposed, equating to a yield of 4% on the latest price.

Nigerian revenue and EBITDA grew by 30% and 52% respectively, while net profit contracted by 17%. Sales volume was down by 16% while effective tax rate (ETR) was higher by 1200 bps.

Non-Nigerian revenue and EBITDA grew by 34% and 45% respectively, while loss after tax (LAT) reduced from N163 billion in 2016FY to N50.4 billion. Volume grew by 9%, gross and EBITDA margins improved, while ETR was lower by 200 bps.

For Q4-17, Group revenue and EBITDA grew by 16.8% y/y and 20% y/y respectively, while net profit contracted by 79% y/y.

PBT grew by 116% y/y, so the significantly higher effective tax rate of 84% (as against credit in Q4-16) was responsible for the earnings contraction.

Volume in Q4 grew by 3.7% y/y and 10.2% q/q.

In Nigeria, revenue and EBITDA grew by 15% y/y and 16% y/y respectively, while PAT fell by 84% y/y, also as a result of significantly higher effective tax rate of 84% (vs. a credit in Q4-16).

Nigerian volume was down by 4% y/y but grew by 12% from Q3-17.

Non-Nigeria revenue and EBITDA grew by 20% y/y and 180% y/y respectively, while loss after tax stood at N570 million as against N20.9 billion in Q4-16.

Non-Nigerian volume grew by 16% y/y and 9% q/q.

 

About Lanre Oyetade

A multiple award winner in Economics and business journalism, Lanre Oyetade has served close to two decades in the media industry, spanning different notable stables, where he is privileged to have risen to the position of a title editor. A masters degree holder in Economics from the University of Lagos and doctoral student at the Babcock University, he is a winner of the prestigious NMMA Capital Market Award for two consecutive years (2004 & 2005), and was also a nominee for the body’s banking and finance and money market awards for two years. In 2013, he also won the Most Outstanding Business-Reporting Title Editor award of the National Institute of Marketing of Nigeria (NIMN). A minister in the LORDS’s vineyard, he has been an inspirational speaker and resource person at many corporate and religious fora since early 2004, and has so far authored three books on the capital market; on personal effectiveness, and on personal finance, in 2008 and 2014, respectively.