Report
Victor Dima
EUR 14.60 For Business Accounts Only

Nestle Nigeria (SELL, TP NGN 570/share) - Q4 16A: Sales and EBIT beat; EPS miss vs. consensus on higher tax


  • Q4 16A revenue increased by a solid 21.1% y/y to NGN 52.4bn (c.12% above consensus and 8.4% above ACe)
  • Gross margin was stable y/y at 44.6%, 550bps higher q/q and 300bps above consensus. EBIT margin improved by 350bps y/y to 24.5%, 330 bps higher q/q (ACe: 19.8%and consensus at 21.3%)
  • EPS at NGN 9.39/share 25% below consensus (NGN 12.5/share) but c.33% above ACe (NGN 7.1/share). Higher taxes of NGN 8.5bn in Q4 16A vs. only NGN2bn in Q4 15A drove the EPS miss vs. Consensus


Underlying
Nestle Foods Nigeria PLC

Provider
Arqaam Capital
Arqaam Capital

Established in 2007, Arqaam Capital is a specialist emerging markets investment bank, bringing regional and international product offerings to the emerging markets. Arqaam Capital combines international best practice with expertise in the markets in which we operate. Our primary role is to provide financial intermediation and create investment opportunities for frontier and emerging markets investors looking to invest in their own markets and abroad, as well as international investors seeking opportunities in target frontier and emerging markets. Arqaam Capital is headquartered in the Dubai International Financial Centre (DIFC), with additional offices in Libya, Lebanon, Egypt, and South Africa. 

Arqaam Capital's research platform provides the largest coverage footprint of MENA equities and one of the largest on the African continent with a total of 300 stocks under coverage. Arqaam Capital is ranked as one of the leading research providers in the region - a reflection of its broad coverage universe, its in-depth and high quality research, as well the compelling investment ideas that the team generates. The analysts closely analyze their sectors and issue in-depth company and sector research while the strategy team connects the micro with the macro, focusing on index analysis, macroeconomics and strategy research. 

Analysts
Victor Dima

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