Still on track for long term growth In 2022, cement producers recorded weak volumes impacted by energy constraints, particularly with gas supply shortages prevalent in the first half of the year. However, this decline was masked by higher cement prices during the period. Volumes continued to contract further in the first quarter of 2023, impacted...
Our conviction stocks closed higher in November, gaining 1.8% m/m, underperforming the ASI by 1.2ppts. Our picks have yielded a return of 71.2% YTD, outperforming the ASI by 32.0ppts. Starting with the Consumer Goods sector, it was a mixed month as DANGSUGAR eased 7.94% m/m, while NESTLE (+9.5% m/m) closed in the green. All in,...
Analyst: Abigail Alabi* Target price: ₦41.76 Rating: BUY FX loss weighs on bottom lineIn Q3’23, volumes declined by 10.5% y/y, as there was a significant decrease in volumes across the cement industry due to the heavy rainfall in the review period. Nonetheless, a 22% increase in revenue per ton, caused an upswing in revenue by...
Analyst: Abigail Alabi* Target price: ₦388.53 Rating: BUY Dangote Cement Plc recently released its 9M’23 earnings, reporting a topline growth of 29% to ₦1.5 trillion. For the Nigerian operations, cement volumes declined for the third consecutive quarter this year. Historically, the Q3 period is quite weak for cement players due to heavy rainfall during the...