Nigeria’s Ashaka Cement Plc posted revenue of N17.3 billion for the first nine months of 2014 (ended 30 September), a 3% increase compared to the same period in 2013. The company also reported after tax profit of N4.3 billion, a 103% improvement from the year-earlier period.
In its analysis of Ashaka Cement’s results, financial services company Vetiva Capita noted that the cement manufacturer’s earning per share (EPS) rose by 103% to N1.95 on the back of upbeat quarterly results (particularly in 1Q14). However, EPS fell 10% behind Vetiva’s estimate of N2.17 due to a weaker-than-expected performance in 3Q14.
On a quarterly basis, profit after tax decreased by 47% to N847 million compared to 2Q14 due to a rapid fall in other income (N243 million in 2Q14 to a loss of N63 million in 3Q14). Furthermore, Vetiva noted the significant surge in Ashaka Cement’s tax for the quarter. Profit after tax in 2Q14 was largely supported by a tax credit of N17 million; however, an effective tax rate of 34% was applied for 3Q14, which led to a rise in tax expense and the resulting effect on net profit.
Edited from various sources by Rosalie Starling
Read the article online at: https://www.worldcement.com/africa-middle-east/14112014/ashaka-cement-posts-3-increase-in-nine-month-revenue-852/