Dangote Cement has released its first quarter results to the Nigerian Stock Exchange, posting a 33.7% Profit After Tax increase for the period ended 31st March, 2017.
The results also showed that profit before tax increased 42% to N77.3 billion while Income tax expense of N6.7 billion increased by 283.2%.
While revenue stood at N208.2 billion, a 48% increase from N140.5 billion recorded in March 2016, the growth was underpinned by increased prices which compensated for the 7% y/y decline in volume.
Group operating expenses (opex) rose by 68.6% y/y, and 38.2% above Q4-16’s.In Nigeria, opex was 103.4% higher y/y while the non-Nigeria opex grew by 96.2% y/y.In both markets, haulage expenses which increased 147% in Nigeria and 133% in Pan-Africa contributed to the significant increase in opex.
Hence while EBITDA grew, EBITDA margin fell 204 bps y/y, with Nigerian realized 62.7% margin (though higher y/y) coming below the Q4-16’s 64.4% margin which management was targeting.
A net finance cost of N5.9 billion was reported, comprising pan-African net cost of N15 billion and Nigerian net income of N9.1 billion.
The Nigerian operation reported forex gain of N5.9 billion during the period.
