Keeping Heads Above Water
Price Review keeps Revenue Elevated
As culled from the 2022FY earnings result, Dangote Cement Plc. grew revenue by 17.0% YoY to NGN1.62trn from NGN1.38trn in 2021FY. This is amid a decline (5.1% to 27.8Mt) in sales volume during the period. We allude this to sustained uptrend in inflation and energy supply disruptions. Also, the Pan-African volumes decline is on the back of extended plant maintenance in Senegal and Congo and volatility in cement/clinker landing costs in Cameroon, Ghana, and Sierra-Leone. On this note, we attribute the increase in Revenue to strategic upward price review by the company’s management.
We are of the opinion that the management will sustain Revenue growth through strategic pricing and improved sales volume.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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