Dangote Group, the largest indigenous industrial conglomerate in Sub-Saharan Africa is set to report double-digit full-year earnings growth in 2018 despite challenges.
According to Bloomberg Intelligence, higher oil prices in second half of 2018 is expected to reflect positively in Dangote’s full-year earnings while Energy costs is expected to be lower in 2018 compared to 2017, especially with integrated coal plants and a refinery scheduled for start-up in 2019 which would automatically cut import costs.
Although Dangote recorded strong fundamentals ranging from falling energy costs to contributions from new pan-African markets however dampened demand in fourth Quarter 2018 thanks to holidays and a unresponsive Nigeria market given upcoming February elections may have restrained company’s performance.
Bloomberg Intelligence also expects Dangote’s return on assets, which fell by almost 36percent in 2016 when Nigeria entered a recession before recovering in 2017 to have improved in 2018.
With its headquarters in Lagos, Dangote Group is the largest conglomerate in West Africa and one of the largest on the African continent. The group employs more than 30,000 people, generating revenue in excess of $4.1 billion in 2017.
BUMMI BAILEY
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