March 6, 2019/Cordros Report Update: We update on NB following 2018FY investors/analysts call. We expect net earnings to decline further in 2019E on intense competition (INTBREW; GUINNESS), a further increase in excise duty, and still-weak consumer demand environment. We forecast c.3.6% net revenue decline, flattish gross margin, and 15.2% EBITDA […]
Results & Dividends
Nestle Nigeria Plc: Strong Earnings Growth in 2018FY Masks Weakness in Q4-18
March 6, 2019/InvestmentOne Report Event: NESTLE published Q4-18 and 2018FY results after close of market yesterday, with EPS decline of 7.9% y/y in Q4. The y/y EPS decline was weighed by significantly higher operating expenditure, higher effective tax rate, both of which offset the increase in gross margin and net […]
Dangote Cement Plc: Healthy Volume Growth to Underpin Decent Earnings
March 6, 2019/Cordros Report Update: We make slight adjustment to our 2019 estimates following the 2018FY results and call. Given the high-base of 2018FY, we now look for -36% EPS in 2019. Our theme for 2019 are (1) 17% group effective tax rate, (2) mid-single digit volume growth, and (3) […]
