LAFARGE AFRICA RECORDS N308BN TURNOVER IN FY 2018

Lafarge
Africa Plc, a member of the LafargeHolcim Group, has declared revenue of N308.4
billion. The Company’s operating profit increased by 215% for the year ended
December 2018. 

The
financial report of the company for the year under review reflected a
stabilization of cement selling price in addition to 9% growth in cement
dispatched in Nigeria.

In
addition, improvements in cost and execution of the company’s new route to
market had a positive impact on operating profit, which increased from N7.9
billion in 2017 to N24.8 billion in 2018. Despite financing cost incurred
during the year, the outlook of the Company’s operations showed significant
improvement.

Addressing
shareholders at the Annual General Meeting of the Company, the Chairman of the
Board, Mr. Mobolaji Balogun said: “Despite the challenging economic and
regulatory operating environment, the Company has continued to make significant
progress on a number of fronts, thereby ensuring solid operating performance.

“The
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margins
in the Nigerian operations stood at 27% at close of the year, resulting from a
stable pricing environment, stabilizing industrial operations, the use of
alternative energy and the implementation of our commercial and logistics
performance improvement plan,” Balogun said.

Other
items discussed at the AGM include the proposal by Lafarge Africa to sell
Lafarge South Africa Holding Limited (LSAH) to LafargeHolcim Group. With the
proceeds from the proposed sale, it is expected that Lafarge Africa’s
shareholder loan as at July 31, 2019, will be completely paid off.

The
loan represents the only existing foreign currency loan in the books of the
Company. The proposal was eventually approved by an overwhelming majority of
shareholders at the AGM.

On
dividend for the year under review, the Chairman stated that “on the basis of
the results for the year, the Board is unable to propose dividends. With the
sale of LSAH as proposed by the Board to shareholders the only debt that will
remain on the books of the Company will be the second tranche of the corporate
bond due for redemption in June 2021 and the subsidized loan in respect of CBN
Power Intervention Funds through the Bank of Industry. This significant
reduction in debt holds prospects for dividend distribution in future”.

In his submission, the MD of Lafarge Africa, Michel Puchercos said: “We are delighted with the understanding by our shareholders on the need to focus our business in Nigeria. The approval of the proposed sale of Lafarge South Africa by the shareholders will cut debts service obligation and curtail substantially financial charges which will have positive impact on liquidity and the opportunity to expand our operations in Nigeria.” https://www.vanguardngr.com/2019/08/lafarge-africa-records-n308bn-turnover-in-fy-2018/