Dangote Cement Plc reported her unaudited Q3 ended September 30th 2017 results to the market today (October 19, 2017). Closer analysis shows that both revenue and net income came in at 36.5% and 44.6% respectively.
Revenue was significantly impacted by a hike in cement price that occurred late last year which has greatly influenced its revenue throughout 2017.
- Revenue came in higher in Q3 2017 compared to the previous year despite lower sales volume. This was due to the effect of a price hike in cement price that was done towards the end of 2016 which has greatly impacted revenue this year.
- The performance was further stimulated by the cost optimization strategy of the firm as evidenced by the reduction in operating expense ratio. Also the percentage of growth of the net income is higher than that of the revenue.
- In addition to this, the firms Q3 2017 net income which came in at ₦193 billion has already surpassed the Full year net income achieved in 2016 which was ₦187 billion. This may result to an increase in dividend that will be paid.
- However, the firm’s capacity to meet its short term obligations weakened due to a decrease in its current and acid test ratio.
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