Lafarge achieves N91.5bn pre-tax profit in nine-month surge as cement sales climb
Lafarge Africa Plc has released its audited financial report for the nine-month period ending 30 September 2024, showcasing significant growth with a pre-tax profit of N91.5 billion.
This represents an increase of 49.69% from the N61.1 billion recorded during the same period in 2023.
The company’s post-tax profit grew by 45.78%, reaching N57.2 billion, while revenue surged by 66.02% to N479.9 billion, with cement sales contributing 97% of total revenue.
Lafarge also reported a substantial rise in ‘other income,’ which increased to N2.2 billion, up from N540.7 million the previous year.
A closer look at Lafarge’s third-quarter 2024 results reveals strong performance, despite an increase in both the cost of sales and administrative expenses.
The company reported a 66.02% year-on-year increase in revenue for the first nine months of 2024, rising to N479.9 billion from N289 billion during the same period in 2023. Cement sales were the primary driver, accounting for 97% of total revenue, while aggregates and concrete sales contributed 2.67%.
However, the cost of sales saw a significant increase of 74.86%, amounting to N246.5 billion, up from N141 billion. Despite this surge, Lafarge still recorded a 57.60% year-on-year increase in gross profit, totalling N233.3 billion, compared to N148 billion in 2023.
Administrative expenses also rose notably, increasing by 57.86% year-on-year to N29 billion, from N18.4 billion in the previous year. Significant portions of these expenses were attributed to office and general costs (32%), salaries and employee-related expenses (25%), and technical service fees (27%).
Additionally, Lafarge’s ‘other income’ rose to N2.2 billion, up from N540.7 million in 2023. Government grants accounted for 44% of the other income, while gains from the disposal of property, plant, and equipment made up 41%.
Lafarge reported an 82.55% year-on-year increase in operating profit and a 49.69% rise in pre-tax profit, reaching N91.5 billion. Post-tax profit increased by 45.78% to N57.2 billion, while earnings per share rose by 45.90%, reaching N3.56, compared to N2.44 in the previous year.
As of 30 September 2024, the company’s total assets surged to N808 billion, a notable increase from N681 billion at the end of 2023. This growth was primarily driven by a significant rise in non-current assets, largely due to increased investment in property, plant, and equipment, which grew from N360 billion to N390 billion. Specifically, production plant assets accounted for N391.7 billion, while building assets totalled N102.9 billion.
Current assets also saw a substantial rise, particularly in inventories, which surged from N54 billion to N100 billion. Notably, spare parts made up 47.9% of total inventories, with semi-finished and finished goods comprising 29.18%.
