Lafarge Africa posts 15.66% profit growth
By Esther Agbo
Lafarge Africa Plc has reported a notable 15.66 per cent increase in pre-tax profit for Q2 2024, reaching N37.9 billion.
This growth has been underpinned by a significant surge in revenue, which rose by 49.06per cent year-over-year to N157.8 billion, up from N105.9 billion in the same period last year.
Revenue, N157.8 billion, up 49.06per cent YoY, Cost of Sales, N75.8 billion, up 54.90per cent YoY, Gross Profit, N81.9 billion, up 44.06per cent YoY, Net Finance Cost, N13.3 billion, a sharp increase of 852.09per cent YoY, Pre-tax Profit, N37.9 billion, up 15.66per cent YoY, Selling & Distribution Expenses, N26.3 billion, up 22.14per cent YoY, Administrative Expenses, N8.4 billion, up 254.53per cent YoY, Operating Profit, N47.7 billion, up 58.77per cent YoY, Profit After Tax, N24.2 billion, up 13.54per cent YoY, Earnings Per Share, N1.5, up 18.11per cent YoY, Total Assets, N264.2 billion, up 10.5per cent YoY.
The standout feature of Lafarge Africa’s financial performance is the impressive revenue growth, largely attributed to the successful introduction of the new water-resistant cement product, “Watershield.”
The launch of this innovative product has resonated well with the market, leading to a 33.39per cent increase in cement sales to N153.6 billion, compared to N105.8 billion in the previous year. The strong market reception of “Watershield” has not only boosted sales but also positioned Lafarge Africa as a leader in innovative building solutions.
While the introduction of “Watershield” has driven revenue growth, it has also led to a 54.90per cent increase in the cost of sales, totaling N75.8 billion. Despite this rise, Lafarge Africa has managed to achieve a 58.77per cent increase in operating profit, which reached N47.7 billion.
This indicates that the company has effectively managed its operational costs and leveraged its product innovation to enhance profitability.
Lafarge Africa’s enhanced financial performance has been reflected in its share price, which currently stands at N36.80. The stock has been trending positively, with bullish momentum aiming for the technical zone of N44.96 per share.
This positive sentiment is further supported by an increase in earnings per share to N1.5, an 18.11per cent rise that signals growing profitability for shareholders.
The company’s ability to innovate with products like “Watershield” demonstrates a strategic focus on meeting market demands and differentiating itself from competitors.
As Lafarge Africa continues to expand its product offerings and optimize its operations, it is well-positioned to capitalize on emerging market opportunities and sustain its growth trajectory.
