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Blue Vertex on Nigeria’s industrial goods sector outlook
As more first quarter earnings trickle in, Dangote Cement's first-quarter earnings are expected to come out on Friday, CNBC Africa joins discuss what to expect from the industrial goods sector with Dare Fajimolu, Chief Research Officer at Blue Vertex.
Tue, 19 May 2020 14:46:44 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Impact of the COVID-19 pandemic on economic activities in Nigeria affecting the first quarter results
- Analysis of Lafarge Africa's positive results with revenue growth and operational efficiency improvements
- Expectations for Dangote Cement's Q1 results and optimism surrounding the company's performance
The industrial goods sector in Nigeria has been closely watched as first-quarter earnings continue to be released. Dare Fajimolu, Chief Research Officer at Blue Vertex, provided valuable insights into the sector's performance. Fajimolu highlighted the impact of the COVID-19 pandemic on economic activities in Nigeria. He pointed out that even before a full lockdown was imposed in April, there were already restrictions in March that affected the country's economic performance. As a result, the first quarter results are reflecting this slowdown in economic activities. Moving on to the specific case of Lafarge Africa, Fajimolu noted positive results with significant growth in revenue and improvements in operational efficiency. While there were some weaknesses observed in growth margins and operating margins due to increased costs, overall, the company's profit before tax and profit after tax showed notable increases. This was attributed to various factors such as a decline in net finance costs and operational efficiencies within the company. The discontinuation of an affiliated group also contributed to the growth in profit after tax. Looking ahead, Fajimolu discussed expectations for Dangote Cement's upcoming Q1 results. With the company benefitting from improved operational conditions and recent funding programs, there is optimism surrounding the results. Overall, the industrial goods sector in Nigeria is navigating through challenges posed by the pandemic and environmental factors while also capitalizing on opportunities for growth and efficiency.
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