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Dangote secures another tax exemption, 5 years back to back 

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Dangote Cement Plc (DANGCEM) has secured another tax exemption approval on its three lines (Lines 3 & 4 and Obajana Line 4) but the expected Q3’18 Nigerian Investment Promotion Commission report would provide details of the development.

What it means

The related lines, which were commissioned in 2014 and had already received NIPC approval for initial three years tax holiday each, would not be taxed by the federal government for the next two years.

Tax holiday history

Dangote Cement is a recipient of a tax holiday from the Nigerian government until 2016 as some sort of incentive as the company received a N10.4 billion ($64.4 million) tax credit from the government, which was added to their bottom line, hence the reason the after-tax profits are even higher.
CardinalStone reported that the company assumed that all three lines would be granted the further 2 years tax concession applied for and, therefore, charged effective tax rate at c.19.0% for the Nigerian business in H1’19.
The independent multi-asset investmentmanagement firm retained the view that DANGCEM’S Nigerian effective tax rate would remain around the 19.0% level on the back of management’s confirmation of the approval of its pioneer tax status extension application.

It’s a buy

Considering its leadership position in the Nigerian and Continent’s cement industry, CardinalStone projected that DANGCEM remains a cost leader in the cement market, boasting a market share of c.64.0% as at H1’19.
It said, “The company has Earnings before interest, tax, depreciation and amortization (EBITDA) and profit after tax (PAT) margins of 46.6% and 25.5% (using H1’19 numbers) respectively. We have a 12-month Target Price of N212.32 on the company and see a 40.7% upside relative to the stock’s last market close. We have a BUY recommendation on the stock.” 

Details of H1’19

DANGCEM’s Q2 19 results showed earning per share (EPS) that grew by 44% to N3.46 from N2.41 in Q2 18, emanating largely from a material decline in net finance cost (-71% YoY) and tax provision for the period (-51% YoY).
On the positive, COGS declined 6.5% YoY, with gross margin expanding 54bps to 58.8%. The cost savings emanated from improved energy cost (-14% YoY), with related cost per ton declining 3% YoY to N15,763. Analysts believe the improvement is linked to the new gas turbines installed in Tanzania and improved efficiency on coal utilisation.
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In addition, a lower effective tax rate (ETR) of 23% compared to 47% in Q2 18, supported growth in PAT by 44% on the year to N59 billion.

Volume growth in Pan-African segment

CardinalStone is optimistic on volumes growth in the Pan-African segment, specifically, on its operations in Tanzania, Zambia and Ethiopia:

Tanzania (3.0Mt Integrated plant)

Production was constrained from January till November 2018, due to the delay in the installation of the gas turbines. The investment firm expects production to ramp up in 2019, following the successful installation of the gas turbines.

Zambia (1.5Mt Integrated plant)

Cement demand has been supported by increased infrastructure and mining projects in the country; volumes grew by 25.0% YoY to 1.0Mt in 2018. We expect this to be sustained in 2019.

Ethiopia (2.5Mt Integrated plant)

Disruptions from civil unrest hampered production and distribution over 2018, as volumes declined by 6.2% YoY to 2.1Mt. We expect activities to recover in 2019, following the appointment of a new prime minister which has improved the political situation in the country.
It said“We expect the Pan African segment to support sales in 2019. Our projected overall volumes for this segment stand at 10.2Mt in FY’19 (+4.7% YoY), accompanied with higher pricing (+6.0% YoY). This translates to a total revenue of N326.9 billion for the segment; thus, increasing revenue contribution of the non-Nigerian segment to 34.2% (31.4% in FY’18). Overall, we project group FY’19 revenue to settle at N956.6 billion (+6.1% YoY).”

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Mr Eazi proposes to Temi Otedola!

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For what seemed like a long while, celebrity power couple—Mr Eazi and Temi Otedola—are finally engaged as Oluwatosin Ajibade better known as Mr Eazi pops the heartwarming “Will you be my wife?” question to his girlfriend of 2 years Temiloluwa Otedola and she responded favourably in the affirmative “Yes” tone.

Fashion mogul and Icon Temi Otedola began dating artiste and music label CEO Mr Eazi in the year 2020 and have been living together ever since in their London apartment, sharing intimate moments, even meeting respective family members. This they’ve both shared in detail on their How Far? With Mr Eazi And Temi Otedola podcast.

Temi announced her engagement by posting the sea-side proposal of Mr Eazi on one knee asking the important question. The video goes by the simple caption of the infinity logo connoting they’re both locked in for life.

Congratulations to Temi Otedola and Mr Eazi!

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Nicki Minaj agrees “Essence” should be song of the year at the Grammys

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American superstar rapper, Nicki Minaj, shares the same sentiments as myriads of Wizkid fans and well-wishers worldwide, in that she concurs to the argument the trendsetting crossover record-breaking single from Wizkid’s 2020 released “Made In Lagos” album, Essence should be in the conversation for the coveted “Record of the Year” plaque at this year’s Grammy Awards.

Although “Essence” did not receive the much desired nomination in the category for “Record of the Year” at the 2022 Grammy Awards, it did get a nod for Best Global Music Performance, the first of its kind.

Irrespective of the snub, Nicki whilie on Joe Budden TV (YouTube) as a guest on the special episode tagged A Conversation With Nicki Minaj & Joe Budden agreed with the host (Joe Budden) when he said “We need people on the Grammy board that know that “Essence” was song of the year” with an exclamatory “Right! Right!” response. She even proffered, “We should have our own Grammy Board“, in support of many and the popular believe that Black Americans or black artistes in general are always stereotyped to a particular category at the award show, if indeed they made it to the top categories, they barely win; Nicki Minaj does not have a Grammy Award herself and that is still a shock to many, especially when considering her refined catalogue of music.

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Pheelz & Buju (BNXN) live the carefree lifestyle on “Finesse”

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After much teasing, the anticipated Finesse by Pheelz and Buju (now BNXN) hit DSPs across the globe and just like the teaser gave off, Finesse is a banger! It is produced by young producer under Pheelz’s wing known as Miichkel.

On Finesse, Pheelz and Buju live their life to the fullest, the carefree lifestyle is what they desire and they are determined to stay on that track for the time being. “I’ve been living the fast life but I see it in slow mo / And you see my lifestyle, I got Gs in the turbo / . . . / Bad girl sey she want Netflix & Chill / So I ja ticket give her warning / If you fall in love, girls it’s certain / You go chop breakfast, I’m not capping“, Pheelz explains on the first verse, even saying love and relationship cannot stop him from living the ‘ballers’ lifestyle; “I’d be dammed if there’s anybody that could be like me / I be like Mo’ Salah, coming up the right wing / I cut through your defender, you no need to tell me / I must finesse / And you know sey me I must net“, Buju braggingly adds on the second verse, saying he can score any chick that catches his eye and dish her the next minute.

listen to the popular joyous chorus “Ah finesse / If I broke na my business / Ama shana e go bright o / Folake for the nighr ohere or on Apple Music.:

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