Lafarge posts 1,205% loss in Q3 as cost of sales rises by 7.5%

The management of Lafarge Africa Plc has released the financial results of the cement company for the period ended September 30, 2018.

In the Q3 earnings analysed by Business Post, the cement maker recorded a 1,205% loss, closing at -N10.4 billion against N937.9 million in the corresponding period of 2017. Also, the loss before tax stood at -N14.4 billion as at September 30, 2018 versus N1.1 billion as at September 30, 2017.

However, despite the loss recorded by the firm, its revenue increased by 4.75% to N234.3 billion from N223.4 billion exactly 12 months ago.

But the cost of sales during the period under review skyrocketted by 7.51% to N178.2 billion from N165.8 billion, while the selling and marketing expenses grew by 49.3% to N4.5 billion from N3 billion, with the administrative expenses moving from N29.2 billion to N32.6 billion.

In the results, Lafarge Africa disclosed that its operating profit in Q3 dropped to N19.1 billion from N28.7 billion, while other income fell by 95.6% to N12 million from N2.9 billion last year, with the net finance cost swallowing N33.5 billion against N27.6 billion 12 months ago.

A look at its balance sheet showed that while the total assets depleted to N545.9 billion from N609.5 million, its shareholders’ fund went down by 25.3% to N132.6 billion from N177.3 billion. Also, its earnings per share (EPS) closed at N1.20k in the period under consideration in contrast to 11 kobo it was in Q3 2017.