Newly published Dangote Cement’s nine month-2018 results has shown that the group Q3-18 EBITDA grew by a marginal 0.7% y/y while net profit was lowered by 8% y/y.
Besides, revenue grew by 6% y/y on 10% increase in sales volume.
Business Hilights gathered that for the three months ended September, gross margin was 130bps lower y/y (dragged by non-Nigerian operation), opex margin higher by 256bps y/y (due to Nigerian operation), while net finance cost increased by 10% y/y (coming also from non-Nigeria).
For 9M-18, revenue and PAT grew by c.14% and c.3% vs. 9M-17. Annualized, both are tracking behind consensus’ 2018FY estimates by 2% and 13% respectively.
Breaking down Q3-18 result across the Group’s operations:
Further details show that its Nigerian operation recorded revenue (2% y/y), EBITDA (0.4%), and PAT (24% y/y) growth.
The company’s earnings got support significantly from the growth in net finance income (302% y/y). The positives from Nigeria are (1) volume growth (6% y/y), higher gross margin (389bps y/y), and lower finance cost (-21% y/y), while the negative is the significant increase in both operating expenses and the margin (47% and 711bps y/y respectively).
Non-Nigerian revenue (14% y/y) and EBITDA (c.3% y/y) grew while loss after tax increased (230% y/y).
Also, earning was negatively impacted by the significant increase in net finance cost (302% y/y).
