Lafarge Africa grows nine months PBT by 13.4%

…says net sales, operating profit impacted by inflation, devaluation

Lafarge Africa Plc has released its third-quarter (Q3) and nine months (9M) to September 30, 2023 financial performance. The cement maker’s net sales of N289.081billion in 9M’23 as against N269.852billion in 9M’22 represents 7.1percent increase. Its operating profit of N69.349billion in 9M’23 as against N56.555billion in 9M’22 implies an increase by 22.6percent.

Lafarge Africa grew profit before tax (PBT) to N61.156billion in 9M’23 as against N53.948billion PBT in 9M’22, up by 13.4percent.

Meanwhile, the cement maker’s profit after tax (PAT) was down to N39.305billion in the review nine months to September 30, 2023, as against N44.90billion profit after tax it reported in 9M’22, down by 12.5percent.

The company’s earnings per share (EPS) of N244 in 9M’23 as against N279 in corresponding nine months period of represents a decrease by 12.5percent.

On October 23, 2023 Lafarge Africa launched its pilot Electric Powered Truck in its cement operations in Ewekoro, Ogun State.

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This project is in line with Lafarge Africa’s commitment to innovation and sustainability in its operations and also aligned with its Accelerating Green Mobility strategy.

“We have injected additional gas trucks into the fleet as we continue to adopt eco-friendly and low carbon means of distribution for our products.

“Lafarge Africa will continue to scale up these innovative initiatives over time in line with our decarbonisation strategy and growth ambitions,” said Lolu Alade-Akinyemi, CEO, Lafarge Africa Plc.

On the results, he said, “The fundamentals of the business remain strong. We achieved strong top-line growth of 9.8percent and 7.1percent in Q3 and 9M, respectively.

“Nine months operating profit grew 22.6percent. Our Q3 performance was however impacted by macro-economic challenges mostly inflation and Naira devaluation”.

Lafarge Africa Plc is a member of Holcim Limited. Listed on the Nigerian Exchange Limited (NGX), Lafarge Africa is actively participating in the urbanisation and economic growth of Nigeria, the largest economy in Africa. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.

“We continue to maintain a strong free cash flow position and a healthy balance sheet, positioning us for sustainable growth. Our mid to long term outlook remains positive.

“We are committed to delivering sustainable value to all stakeholders as we go into the last quarter of the year. I would like to thank all employees and stakeholders of Lafarge Africa for their support over the years and in the last quarter,” the CEO said.

In their outlook, the company noted that the Nigerian Infrastructure and Construction Sector is expected to continue to grow despite inflationary pressure on purchasing power.

“As a result, we maintain our positive outlook, with continued market recovery expected for the last quarter of the year. We will continue to maximise volume opportunities across our markets and actively manage our costs.

“The Company remains committed to its sustainability ambitions and strategy of ‘Accelerating Green Growth’ through innovative building solutions and delivery of stakeholder value,” Lafarge Africa noted.