Lafarge Africa Grows Profit by 53% to N60 Billion
Lafarge Africa grew profitability by about 53% year on year to N60.076 billion on the back of improved sales and efficient cost management, details from the cement company’s unaudited financial statement for 9m-2024 revealed.
Its share price climbed by 4.05% to N38.5 in the equities market after the impressive earnings performance which pushed its market capitalisation to N620.150 billion.
Profit after tax grew by 52.8% year on year to N60.076 billion from N39.305 billion in the comparable period in 2023.
The cement company’s revenue increased by 65.9% year on year to N479.50 billion, driven by increases in volumes and prices adjustment from N289.081 billion 12 months ago.
At N241.730 billion, costs of goods sold was 71.4% higher than previous year when it was N141.019 billion. The trend line showed that costs of goods sold in the period rose faster than revenue surge, depressing the market.
Gross profit margin dipped by 1.6% to 49.6%. Furthermore, its operating expenses grew by about 39% year on year to N109.736 billion from N79.245 billion in the comparable period. This thinned out the bottom line in addition to pressure from finance costs.
At N35.751 billion, net interest paid was more than 336% above N8.193 billion used to service borrowings in the equivalent period in 2023 due to Nigeria’s high interest rate environment which pushed benchmark interest rate to 27.25%.
Still, pretax profit came stronger year on year, settling at N94.326 billion from N61.156 billion in the comparable period.
Net interest costs surge was as a result of FX losses incurred in Q1’24, which have since been fully realised. Overall, PAT grew by 52.8% YoY to N60.07 billion, indicating a strong rebound after a 17.3% year on year decline in the first half of the year..
Commenting on the results, Lolu Alade-Akinyemi, CEO of Lafarge Africa, said “We achieved strong top-line growth of 101% and 66% in Q3 and 9M, respectively. PAT improved on the back of operational efficiency amidst heightened cost pressure.
“Our performance was driven by strong output due to improved plant stability, enhancement in our supply chain operations and our cost management initiatives.” Our strategic initiatives contributed significantly to our results despite macroeconomic challenges.
“We remain committed to our innovation drive and green growth acceleration, in line with our sustainability ambitions, while also delivering value to our stakeholders. I would like to thank our esteemed customers, employees, and all other stakeholders of Lafarge Africa for their commitment despite the macroeconomic headwinds being experienced in the industry.” #Lafarge Africa Grows Profit by 53% to N60 Billion
