Following the release of FY'22 financials and subsequent conversations with management, we raise our revenue projections for WAPCO across our forecast horizon. Specifically, we have a new revenue CAGR of 12.3% over our five-year forecast horizon (vs 11.5% previously). Our optimism reflects the potential impact of the ongoing debottlenecking exercises in its Ashaka and Ewekoro plants, which are likely to support cement volumes amidst steady demand and also improve economies of scale.

Following the drag on volumes driven by inadequate gas supply and depressed consumer wallets in FY'22, we now project an 8.5% volume improvement for the current financial year aided by the abovementioned supports. In particular, the debottlenecking exercise is expected to free up over 2.0 million metric tonnes (MMT) in installed capacity and improve the firm's ability to meet demand.