Lafarge Africa reports 37.1% increase in net income

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By Kayode Tokede

Lafarge Africa Plc has released its unaudited condensed financial statements for nine months ended September 30, 2020 with 37.1per cent increase in net income to N28.2billion as against N20.57billion reported in prior nine months ended September 30, 2020.

The cement manufacturing company also reported 10.3 per cent increase revenue nine months of 2020 rose to N179.9 billion from N163.06 billion in the same period in 2019.

The cement group recorded a 2.81 per cent profit after tax growth in Q3 2020 at N4.867 billion from N4.734 billion in 2019 while free cash flow gained 94.5 per cent to N 50.6 billion in nine months of 2020 as against N26.01 billion reported in nine months of 2019.

The CEO of Lafarge Africa Plc, Khaled El Dokani stated in a statement that: “Our robust results for the first 9 months reflect the strong recovery of the demand in Q3 and the successful implementation of our “HEALTH, COST & CASH’’ initiatives. Both have delivered considerable improvement in recurring EBIT, net income and free cash flow, despite the impact of the COVID-19 pandemic and Naira devaluation, particularly in Q3.”

In its outlook, the company said market demand is expected to remain strong in Q4; Naira devaluation and inflation remain a concern in Q4; The implementation of our “Health, Cost & Cash” initiatives would continue to deliver improvement in our performance; We will maintain a healthy balance sheet.

Lafarge Africa was incorporated in Nigeria on February 26, 1959 and commenced business on  January 10, 1961.

The Company formerly known as Lafarge Cement WAPCO Nigeria Plc changed its name on Wednesday 9 July 2014 and the change of name became effective with the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH) which was disposed in 2019, United Cement Company of Nigeria Limited (UNICEM), AshakaCem Ltd (AshakaCem) and Atlas Cement Company Limited (Atlas).

Lafarge Africa has the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State) with Ready-Mix operations in Lagos, Abuja and Port Harcourt. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.