Capital market analysts have rated the performance of Dangote Cement Plc in the first half of the year, 2018 to be very strong and impressive.
The company which published its half year results for the period ended June 30, 2018 showed that the Group’s revenue grew by 16.91 per cent over the comparable period of 2017. The reported figure for the period was N482.43 billion compared to the N412.67 billion of H1, 2017
Earnings before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood smartly over the figure quoted in similar period of 2017 by 22.64 per cent, that is, it is currently at N200.51 billion, as against the previous N163.49 billion. Profit before tax stood at N185.53 billion, while net profit for the period stood at N113.16 billion. The company reported earnings per share of N6.60 for the period ended June 2018. Higher than N6.41 reported for the comparative period in 2017.
On the liquidity/risk ratios, analyst noted that the estimated Debt to Equity value is well within acceptable limits, especially considering the high capital intensiveness of the cement business.
While on the profitability ratios, when compared to other manufacturing companies, the 40.96 per cent cost of sales margin achieved by Dangote Cement is commendable. Profit margin stood at 11.77 per cent, while return on average equity is fair at 15.55 per cent, higher than 13.34 per cent return achieved in 2017.
Also, all efficiency ratios improved over the corresponding period of 2017, total asset turnover grew by 10.73 per cent to stand at 27.90 per cent as against the 25.19 per cent of the previous half year. Equity turnover also improved by 32.13 per cent as it currently estimated at 66.28 per cent as against 50.16 per cent.
Capital market analysts noted that all investment ratios estimated from the half year financial statistics of Dangote Cement are positive and quite impressive, As in the company’s earnings figures, the estimated Earnings per share (EPS) of Dangote Cement is 3.15 per cent above 2017 estimate with EPS is currently N6.64 from N6.44
Meanwhile, due to better income realized from Exchange differences on translating net investments in foreign operations, and other comprehensive gains/losses in 2017 compared to H1-2018, the total comprehensive income per shares stood at N7.36, a 7.67 per cent below the N7.97 estimated last year. The price to earnings ratio was fairly revalued by the investing public as it now stands at 8.84x from the previous estimate […]