February 28, 2017/Cordros Research

Dangote Cement Plc (DANGCEM) just released 2016FY result wherein revenue grew by 25% (to N615 billion vs. consensus’ N620 billion) while PAT increased by just 2.9% (to N186.6 billion vs. consensus’ N175 billion). A tax credit of N20.89 billion (resulting from deferred tax credit)  was reported in the fourth quarter, equating to N5.7 billion credit at the end of the year, after offsetting the N15.2 billion charge reported as at end of September (nine months). Excluding the impact of the tax credit, we estimate DANGCEM’s 2016FY PAT to have declined by 6.6%.

The reported revenue is behind our estimate by 2.5% while PAT beat by 5.9% (3.9% behind our estimate on tax adjusted basis). The Board approved a final dividend of N8.50, higher than both Cordros’ (N8.00) and the final dividend of N8.00 paid in 2015FY.

A conference call for analysts and investors will hold today 28th February 2017 at 16.00 Lagos time / 15.00 UK time (see details below).

• UK                    +44 (0)20 7043 4129

• UK                    0800 327 7280

• USA                  +1-866-840-9752

• USA                  +1-646-663-7922

• Nigeria             +234 (0)1 888 9001

• Nigeria             +234 (0)1 888 9090