Lafarge Africa proposes N1 dividend per share amid N212.9bn FY’19 revenue
Lafarge Africa Plc has proposed dividend of N1 per share as shown in its audited results for the full year ended December 31, 2019.
Lafarge’s full year revenue of N212.9billion in 2019 represents a 2.21 percent decrease when compared to N217.8billion revenue in 2018. It closed the review year with operating profit decline of 9.4percent to N34.91billion from N38.52billion in 2018.
Earnings per share (EPS) rose to 0.96kobo from 0.93kobo in 2018, up 3.2percent. The share price at N9.8kobo as at Monday April 6 nears its 52-week low of N8.95. Shareholders fund increased to N344.914billion from N134.541billion in 2018, up by 156.36percent.
The company reported a net debt decline from N288.9billion to N37.1billion further to the divestment from South Africa and successful rights issue in 2019.
Khaled El Dokani, Country CEO of Lafarge Africa stated: “Our turnaround and cost-reduction strategy in FY 2019 and the divestment of the South African business, have delivered strong results. The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.”
On the outlook for 2020, the company said: “As the Coronavirus (COVID-19) pandemic now impacts Nigeria, Lafarge Africa has taken the necessary measures to protect the health of its employees, customers, suppliers and other stakeholders.
“The construction sector and construction sites are generally more resilient than other sectors and Lafarge Africa has a strengthened balance sheet and is well equipped to weather the storm. However, we are closely monitoring the evolving situation and the impact of the COVID-19 pandemic on the Nigerian market,” he said.
The company said that the Nigerian cement industry growth momentum is expected to slow down in FY 2020 compared to 2019 on the back of the COVID-19 pandemic and the challenging global macro-economic environment.
Lafarge said it has launched an action plan “Health, Cost & Cash” and will continue to focus on the implementation of its cost-optimisation initiatives during this period to minimise the impact on the business.
Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim, a world leader in building materials. Listed on the Nigerian Stock Exchange, Lafarge Africa is actively participating in the urbanisation and economic growth of Nigeria, the largest economy in Africa.
Lafarge Africa ha s 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.