Lafarge Africa Plc held its 63rd Annual General Meeting in Lagos on Thursday April 21, 2022. During the meeting, shareholders unanimously agreed on the proposed total dividend of 200kobo per share (Interim and Final Dividends) as the company reported a Profit After Tax (PAT) of 51 billion Naira, a 65.4percent growth as against the previous year’s result.
Lafarge Africa recorded a 27.1percent increase in net sales driven primarily by strong volume and price improvement. The audited financial result for 2021 is an indication of the strength of the company’s execution of its strategy, which has led to impressive results.
Addressing shareholders during the meeting, Adebode Adefioye, chairman of the company’s board, hinged the company’s success on the rising demand for cement as building and construction activities picked up nationwide. ‘The cement industry experienced another year of strong growth, mainly attributable to increased government expenditure on infrastructure and improved real-estate investments by private and commercial home builders.”
According to Adefioye, the company benefited from these improved market conditions with volume and price growth; with net sales increasing by 27.1percent compared with the previous year, to close at N293.1 billion. “The positive impact of increased net sales, moderated cost of sales, selling, distribution and administrative expenses amidst inflation and devaluation pressures resulted in improved margins recorded for the year.”
“Through effective governance frameworks, assessments, as well as monitoring and evaluation, we are entrenching a culture of ownership, ethics and corporate responsibility in our activities. We also continue to pursue and leverage strategic partnerships that help sustain value and with a positive impact on our stakeholder groups. We are providing thought leadership initiatives to strengthen our voice and position as a foremost company in Nigeria committed to Environmental, Social and Governance (ESG),” he remarked.
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Adefioye, while thanking the Shareholders for their support over the years, said that the dividend pay-out was a worthy return on their investments and assured them of the final dividend payment on the 21st of April 2022 to Shareholders whose names appear in the Register of Members as at 1st April 2022, and who had completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.
While responding to shareholders during the meeting, Khaled El Dokani, Country CEO, Lafarge Africa Plc said: “Our 2021 result was a record one and the PAT also was the best profit declared in a decade. Our top-line was mainly driven by volume growth, as well as the price improvement that we have noticed throughout the year, both have contributed to the improvement on our topline compared to last year.”
El Dokani further remarked: “In 2021, the cement demand was fairly good, I believe the country showed extreme commitment towards developing the infrastructure across the board.’
He noted that the company’s performance has once again shown the tenacity of the board, management and employees in achieving the overall goal of creating value for its stakeholders. “Our journey has been one of resilience, integrity and innovation, as we strive to meet the needs of our customers while adapting to the changing economic situations and growing demand for sustainable practice in the construction industry. I sincerely thank the entire Lafarge Africa team for their contributions to these successful outcomes” he added.
Also speaking at the event, a representative of the shareholders, Olagoke Samson Olusegun commended Lafarge Africa Plc for sustaining profit and dividend payment despite the harsh and challenging economy experienced in the year 2021. “I want to commend the chairman and the board. We know where we were in 2019, so today is a day of celebration. The report we are considering today is excellent and the reason for this is the untiring efforts of the board and management.”
Another shareholder Tunji Bamidele thanked the company for its resilience throughout the global pandemic and the tough business environment which led to the delivery of exceptional results.
In the same vein, Tunde Badmus acknowledged with appreciation the efforts of the board and management towards achieving this stellar performance. “I congratulate the board and management for this robust result and hope that you continue in this way so that we can be the number one that we are.”
Other Board members present at the event were the Chief Financial Officer, Mr. Lolu Alade-Akinyemi, Mr. Grant Earnshaw, Non-Executive Director, Mrs. Elenda Giwa-Amu, Non-Executive Director. The General Counsel and Company Secretary, Adewunmi Alode was also in attendance.
The 63rd AGM was held in accordance with the Corporate Affairs Commission’s guidelines on the holding of Annual General Meetings (AGM) of public companies.
Lafarge Africa Plc, a leading Sub-Saharan Africa building solutions company is a member of Holcim Limited, a world leader in building solutions accelerating our world’s green transformation. Listed on the Nigerian Stock Exchange, Lafarge Africa is actively participating in the urbanization and economic growth of Nigeria, the largest economy in Africa.
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.
Lafarge Africa leverages on its innovative expertise to provide value-added products and services solutions in the building and construction industry in Nigeria.
