DANGOTE CEMENT PLC FY'21 Earnings Release - Earnings growth spurs buoyant outlook
| Higher prices offset costs Group revenue recorded double-digit growth for the sixth consecutive quarter, with a significant jump of 32% in topline growth in Q4’21. This translated to a 34% increase in FY’21 revenue to ₦1.4 trillion. For the Nigerian operations, cement sales volume jumped 17% y/y on the back of continuous increase in private sector demand for housing infrastructure and the public sector demand for capital projects. According to management, the strong demand was also buoyed by enhanced route to market channels, creating a more effective distribution network. Consequently, revenue expanded by 38% to ₦993.3 billion. The Pan-African business recorded softer growth compared to the Nigerian operations as sales volume improved by 8% y/y. However, higher prices in response to the increased tariff as well the strong performance in Zambia, Ethiopia and Senegal prompted a revenue growth of 24% to ₦397.3 billion across the Pan African segment. |
|||||
| Private and public demand to ramp up growth in 2022 We envisage another solid year for DANGCEM with public and private demand as well as pricing to be major drivers. For the Nigerian market, we expect prices to decline slightly on the back of increased production capacity by industry players, thereby driving demand, especially in the private sector. Additionally, we expect a ramp up in public sector demand on the back of the government’s commitment to infrastructure investment as the election period draws close. Another highlight for the 2022 outlook is the establishment of Public Private Institutions like InfraCo. The Infrastructural Corporation of Nigeria Limited (INFRACO), a newly established Public Private Institution would provide funding for public projects like roads, rails and power infrastructure. We anticipate a boost in cement demand as these projects commence. |
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.