Corporate Results | |
Corporate Results | |
3961 VIEWS | |
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Friday, March 22, 2019 06:15 PM / NSE
Implications
Downward adjustment to consensus estimates expected
following weaker-than-expected results.
Compared with our estimates, while sales were slightly below our N40.8bn forecast, PBT missed
by 44%. The variance was driven by negative surprises on the opex and other income
lines. FY PBT of N13.7bn came in well behind
consensus estimate of N16.5bn. Management proposed a
final dividend of N8.25, slightly behind
consensus forecast of N9.35.
Positives
Besides Q4 2018 sales growth of 7% y/y to
N39.6bn there were no other positives.
Negatives
The P&L trend below the sales line was
negative on a y/y basis. A gross margin contraction of -314bps y/y to 9.6%,
opex growth of -31% y/y and other income decline of -24% y/y completely offset
topline growth. On a sequential basis, the trend was broadly similar.
Year-to-date, 11’s shares have shed around
-10% vs. the broad market’s -1.2% decline.
We rate the stock Neutral. Our estimates are under
review.
11 PLC Q4 2018 results
vs. FBNQuest Capital Research estimates (N millions)
Source: NSE, FBNQuest Capital Research estimates
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