The NAFDAC Head of Investigation and Enforcement, Federal Taskforce, Embugushiki-Musa Godiya, also said the agency would work to ensure that fake cosmetics and other counterfeit products were completely wiped out of the country.
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Lafarge Nigeria Plc: Standing its ground despite heated competition
By Folakemi Emem-Akpan
Introduction
Lafarge Nigeria Plc was able to step up the level of its income generation in 2023. It also was able to improve its profit position for the 2023 financial year. Such growth had a positive effect on its profitability ratios, as the latter generally improved over the prior year’s results.
Also, Lafarge’s results were quite good when compared with the industry averages for the year.
Growth indices
For its 2023 financial year, the company recorded an 8.7 percent growth rate in its turnover, increasing to N405.5 billion and up from N373.2 billion in the preceding year. It is worthy of note that this 8.7 percent increase in the company’s ability to expand income was lower than the 27.3 percent growth rate achieved in the erstwhile year.
Pre-tax profit growth rate followed a slightly different pattern, growing to N80.7 billion, 15.6 percent more than a profit of N69.8 billion in the erstwhile year. This 15.6 percent growth rate was better than the 12.2 percent growth rate recorded in the preceding year. While after tax profit was a little lower in the 2023 financial year than that of 2022, the company chose to dedicate the same level of its distributable profit dividend as it had done in the prior two years.
Also, Lafarge had more assets and more equity to work with in the year under review. Total assets grew by 13.4 percent to N681 billion, while equity grew at a slower rate (4.6 percent) to N435.1 billion. While these growth rates were good in and of themselves, they were slower when compared with the preceding year’s growth rates.
Profitability ratios
Profitability for the 2023 financial year was better for Lafarge, as most parameters showed a progression over the preceding year’s. First to achieve an improvement was the profit margin of the company, increasing to 19.9 percent in 2023 from 18.7 percent in 2022. What this means is that for every N100 earned by the company in the course of the year, N19.90 of it translated to profit. This is as compared to an already high profit of N18.70 for the year preceding 2023.
It is quite possible that the reason for the company’s better profit margin for the year under review is its operating margin (which measures what proportion of turnover a company spends on operations and which must be kept as low as possible without compromising standards). Such operating margin improved by decreasing to 26.0 percent from 30.0 percent during the course of the year.
Also to record a growth (albeit slight) was return on assets (ROA), improving to 11.8 percent in 2023 from 11.6 percent in 2022. Analysis shows that every N100 worth of assets contributed N11.60 to pre tax profit.
One of the profitability ratios that recorded a slowing down was the return on equity (ROE). ROE slowed down to 11.7 percent, lower than 12.9 percent in the prior year.
Staff matters
The company did not do badly as regards staff matters. Pre-tax profit per employee stood at N55.01 million on the average. Not only is this as compared to and better than the N51.9 million employees contributed on the average to the company’s pre-tax profit in 2022, it was also much higher than N37.7 million in 2021.
Meanwhile, average staff cost dipped to N19.63 million from N26.14 million within the course of 12 months. This means that there was a N6.51 million decline to what an employee earned (on the average) between 2023 and 2022.
Perhaps because it decreased its staff costs, Lafarge succeeded in deflating such staff costs as a proportion of income earned. Staff costs as a portion of turnover decreased and thereby improved to 7.1 percent in 2023 from 9.4 percent in 2022.
Other ratios
At 1.1 times, Lafarge’s current ratio was on par with the industry average for 2023. What this means is that for every N1.00 of short-term obligations, the company had N1.10 in short-term assets, and was completely able to meet short term debts from short term assets.
Having a debt-to-equity ratio of 0.6 shows that the company is using 60 kobo of liabilities in addition to each N1.00 of stockholders’ equity. In other words, the company is using N1.60 of Lafarge capital for every N1.00 of equity capital, higher than the N1.40 it did in 2022.
Lafarge Vs BUA Cement: Evenly matched
Lafarge and BUA Cement are both well known names in the cement industry. In terms of size, BUA Cement is the slightly bigger of the two. However, these two companies are evenly matched in terms of their profitability ratios.
Turnover growth rate
Lafarge had a turnover growth rate of 8.7 percent in 2023. BUA Cement also recorded a higher level of turnover, with such turnover growing by a much higher 27.5 percent. BUA Cement is thus the winner in this respect.
Pre-tax profit growth rate
For the year, Lafarge had a better result in terms of pre-tax profit growth rate. Its pre tax profit grew by 15.6 percent. On the other hand, BUA Cement recorded a decline rather than a growth. This made Lafarge the winner in this aspect.
Profit margin
When it comes to profit margin, Lafarge was the winner. Its profit margin stood at 19.9 percent, higher than and better than BUA Cement’s 14.6 percent profit margin result.
Returns on equity
BUA Cement was the clear winner when it comes to return on equity. Its return on equity was 18.0 percent, meaning that every N100 worth of equity contributed N18.00 to the after-tax profit. This was much higher than Lafarge’s N11.70 contribution.
Return on assets
Contrary to ROE, Lafarge was the winner when it comes to return on assets (ROA).
Lafarge had an ROA of 11.8 percent, higher and better than BUA Cement’s 5.4 percent.
Conclusion
In the above analysis, the profitability ratios of Lafarge for the 2023 financial year were compared with its ratios for the 2022 year. Under this comparison, Lafarge did well. Also, a second comparison is done against a competitor. Under this comparison, Lafarge also did well as it stood its own against BUA Cement, one of its competitors.
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Invoke executive order for state, LG police, Afenifere tells Tinubu
The pan-Yoruba socio-cultural and political organisation, Afenifere, on Saturday, urged President Bola Tinubu to invoke an Executive Order for the establishment of state and local government Police.
Afenifere, in a statement by its National Publicity Secretary, Jare Ajayi,in Ibadan, the Oyo State capital, also called for the erection of close-circuit television sets and deployment of modern technology for security purposes in strategic locations to end insecurity.
Ajayi said, “There are indications that Tinubu is desirous of putting an end to this deleterious menace. Towards the end of January this year, he approved the procurement of digital tracking tools to enhance the apprehension of bandits, terrorists and armed robbers.
“On Monday, April 22, this year, he used the occasion of addressing participants at the African Counter-Terrorism Summit which opened on that day in Abuja to assure everyone of his government’s readiness to ensure greater security. Unfortunately, recent happenings have not shown that the President’s desire in this respect is being worked upon.
“President Tinubu should get state and local government police off the ground immediately through the invocation of an Executive Order while the process of amending the Constitution continues.
“Close circuit television sets, deployment of modern technology for security purposes including drones must be effected immediately.”
He explained that the statement was motivated by the recent reports of banditry and kidnapping in Ogun, Edo, Ekiti, Oyo, Kogi, Zamfara and Niger States, respectively which made a research organization declare Nigeria as one of the top nations where kidnap ranks highest globally.
Ajayi noted that Fulani herders and farmers’ clashes kept occurring in Osun, Ondo and Oyo State; Otu, Igbeti and Alaga in the Oke-Ogun area of Oyo State were the latest victims.
The Afenifere spokesperson also said, “In order to end insecurity, enhance people’s welfare and ensure the sustenance of Nigeria as one of the top investment destinations in Africa as desired by the government, there is the urgent need by the Federal Government and security agencies to be more innovative and decisive.”
He lamented that banditry, including armed robbery, kidnapping was still occurring on South-West roads such as Lagos-Ibadan, Ibadan-Ijebu-Ode; Akure-Ilesa-Ibadan; Ore-Ijebu Ode-Lagos, Ikirun-Osogbo-Ilesa; Lokoja-Abuja, Owo-Benin and Ibadan-Iseyin-Saki.
“Latest reports have it that on Monday, May 13 instant, eight cocoa farmers were kidnapped at Marindoti Cocoa Farmers’ settlement in Ovia South-West Local Government Area of Edo State. Three students of Millicent Secondary School in the same area on their way to write their Senior Secondary School Examination, were also kidnapped at the same time.
“A sum of N31 million was reportedly paid to ransom three people who were kidnapped at Longe village on Ibadan-Ijebu-Ode Road last week Sunday. On Thursday, May 16, one Seliat Adeniji (nee Raji) was kidnapped in her Ebedi home in Iseyin, Oyo State. Her guard was killed in the process.
“Hon Bello Hassan representing Zurmi/Shinkafi Federal Constituency in the House of Representatives last Tuesday claimed that terrorists have sacked about 50 communities and abducted over 500 people in his area of Zamfara State as bandits overran Zurmi, the second most populous town in the state killing palace officers as well as policemen.”
To put a serious check on all these, the Afenifere spokesman said that there was an urgent need to dig deep into the roots of the menace and to be decisive in applying the necessary measures.
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NAFDAC shuts cosmetic shops in Lagos, seizes counterfeit products
The National Agency for Food and Drug Administration and Control has shut three shops and raided others during a clampdown on the sale of unregistered “Dr. Teal’s” brand of cosmetics in Lagos State.
The agency disclosed this in a post on its X handle on Saturday, stating that the action came after a complaint from the trademark holder.
The statement read, “NAFDAC has shut down three cosmetics shops and raided others, targeting the sale of unregistered ‘Dr. Teal’s’ brand cosmetics. This action follows a complaint from the trademark holder regarding potential counterfeit products.
“Two suspected shops along Excellent Line at the Trade Fair Complex were targeted, resulting in sealed shops and invitation letters issued to attendants.”
It added that another development unfolded at Okas Global Link Limited where NAFDAC confiscated over 200 cartons of various Dr. Teal’s products and other unregistered cosmetics, suspecting them to be the source of distribution.
A shop identified as Cubana Stores at Phil Hallmark Plaza was also reported to have been sealed for stocking and selling the moisturising body and bath products of the alleged unregistered Dr. Teal’s brand.
NAFDAC added that according to its regulations, shop owners found guilty of selling unregistered products face penalties of up to ₦5m fine.
It said shop owners were also being questioned as part of ongoing investigations.
In the statement, the agency emphasised the health risks associated with fake cosmetics, stating the potential dangers of using products containing harmful substances.
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Traders, soldiers clash at Banex Plaza in Abuja
The Federal Capital Territory Police Command has deployed intelligence officers to Banex – an electronics and telecommunications gadgets market, in Abuja following a conflict that ensued between soldiers and some traders on Saturday.
A viral video seen by our correspondent on X on Saturday showed a multitude of civilians overpowering some soldiers during a free-for-all fight at Banex.
The Defence Headquarters, and the spokesperson for the Nigerian Army, Onyema Nwachukwu could not be reached for comments as of press time.
Meanwhile, a trader who simply identified himself as Abdul, told our correspondent on Saturday that the conflict ensued over the sale of a mobile phone.
“There’s a problem at Banex now. Some soldiers came to complain about a phone, and during an argument with the traders, a fight ensued,” Abdul simply revealed.
When contacted over the development, the spokesperson for the FCT Police Command, SP Josephine Adeh said the Commissioner of Police, Benett Igweh has deployed officers of the FCT Intelligence Response Team to the scene of the incident.
“The CP has deployed the Intelligence Response Team to the scene,” Adeh confirmed.
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