Nigeria | NGX

Dangote Cement's recently released FY 2023 results showed the company’s Revenue increased by 36.4% y/y, to N2.21tn for FY 2023 from N1.62tn in 2022. Quarterly, performance was resilient, as Revenue was up by 23% q/q to N693.49bn in Q4 2023 from N563.77bn in Q3 2023. Given a 1.75% decrease in sales volumes, we attribute the growth in Revenue to price increases, however, we cannot determine the quantum of the price increase as of the time of writing this report.

Dangote Cement Plc held a conference call on March 04, 2024, to review its recently released FY'23 financial results and provide guidance on the company's strategic initiatives for the future. Below are key highlights of the call.

In its recently released FY 2023 results, MTN Nigeria sustained its Revenue growth momentum, reporting a 22.7% y/y growth in Revenue to N2.47tn from N2.01tn in FY 2022. On a q/q basis, Revenue increased by 13.3% to N695.90bn in Q4 2023 from N614.21bn in Q3 2023. The growth in Service Revenue (up 22.4% y/y) remained the major driver of the rise in Total Revenue.

In its recently released FY 2023 results, BUA Cement reported a 27.4% y/y growth in Revenue to N459.99bn in FY 2023 from N360.99bn in the prior period (FY 2022). Similarly, on a q/q basis, Revenue was up by 8.1% to N124.14bn in Q4 2023 from N114.77bn in Q3 2023. While no information has been provided on the Revenue breakdown, we attribute the company’s top line growth to increases in both price and volume.

The banking sector has experienced a material shift in its operating environment since our last publication in January 2024. This shift was due to aggressive policy decisions, which were mostly inspired by efforts to contain the currency crisis and surging inflation, and improve banks' capacity to withstands unexpected changes in key variables.

Nestle Nigeria Plc’s (Nestle) recently released audited FY 2023 results showed the company’s Revenue increased by 22.45% y/y to N547.12bn in FY 2023 from N446.82bn in FY 2022 driven by both a 30% y/y and 10.6% y/y increase in its Food and Beverage segments to N353.70bn and N193.42bn in 2023 from N271.99bn and N174.83bn in 2022. On q/q basis, Nestle reported 11.6% increase in its Revenue to N150.53bn in Q4 2023 from N134.82bn in Q3 2023. Its food and beverage segments advanced by 12.7% and 9.6% q/q to N99.32bn and N51.21bn in Q4 2023 from N88.11bn and N46.71bn in Q3 2023 respectively.