Ashaka nine-month net profit up 3% YoY

Ashaka Cement Plc nine-month results for the period ended 30 September 2014 showed revenue growth of three per cent YoY to NGN17.3bn (US$100.9m) profit after tax rose 103 per cent YoY to NGN4.3bn.

Nine months results for the period ended 30 September, 2014 showed revenue growth of three per cent YoY to NGN17.3bn profit after tax rose 103 per cent YoY to NGN4.3bn.

On a quarterly basis, profit after tax was down 47 per cent QoQ to NGN847m due to a sharp fall in other income from NGN243m in the second quarter to a loss of NGN63m.

Following from the slowdown in 2Q, analysts at Vetiva Capital estimate Ashaka Cement 's volume contracted a further 16 per cent to c165,200t in the 3Q, as the June-September period is historically characterised by heavy rainfall  which disrupts building and construction activities.

Ashaka Cement's energy efficiency improved further over the three-month period as cost of sales declined at a faster pace than sales, down 25 per cent QoQ. Supported by the improved cost efficiency, gross profit inched up two per cent QoQ to NGN2bn, consequently improving gross margin to 41 per cent from 34 per cent in 2Q and in line with the average for the year, Vetiva added