Cement Company of Northern Nigeria PLC - Earnings miss estimates following a tough Q4
​CCNN reported a 37% y/y decline in FY’15 EPS to N0.96, 38% behind our N1.55 estimate. Q4’15 was particularly tough for the company with a loss-after-tax of N0.4 billion (after tax credit of N0.4 billion) reported for the period following significant decline in turnover during the 3-month period to N1.5 billon (Q3: N2.8 billon). Q4 revenue was the weakest quarterly revenue recorded since 2007. We believe that LPFO (for kiln firing) supply would have been significantly disrupted over the quarter. We note that whilst petroleum product production remained challenging at the Kaduna Refinery (CCNN’s main LPFO supplier) over the Q4 period, tight FX supply would have also constrained imported LPFO supplies from other sources. In all, FY’15 revenue was down 14% y/y to N13.0 billion (13% behind our estimate) whilst PAT was down 37% y/y to N1.2 billion.
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