Lafarge Africa, one of Nigeria’s leading building solutions companies and a member of Holcim Limited has recorded a slowdown in its profit after tax of N14.93 billion.
Data gleaned from Lafarge’s financial results available on the Nigerian Exchange Group showed the firm’s Profit after tax reduced by 15 percent to N14.93 billion in the first quarter of 2023 from N17.56 billion recorded in the same period of last year.
The reduction in profit after tax is a result of an increase in income tax to N7.55 billion in the first quarter, a 93 percent increase from N3.91 billion recorded in the same period last year.
The firm’s finance income also increased to N913.877 million in the first three months of 2023 from N81.56 million recorded in the same period of 2022.
The 1020 percent spike is a result of an increase in interest income from short-term fixed deposits and current accounts.
“The company recorded a Net finance income of N242m in Q1 23 from a Net finance cost of N566m in Q1 22, owing to a 1020 percent increase in interest income from short-term fixed deposits and current accounts and foreign exchange gains of N324m. We are pleased that the company has effectively managed its FX exposure, as stated during the Q4 22 Investor/Analyst call. Consequently, Profits Before Tax grew by 4.7 percent,” CardinalStone said in a statement.
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However, finance costs declined by 0.62 to N671.57 million in the period under review from N675.7 million in the same period of last year.
The cost of sales declined to N45.3 billion in the first quarter of 2023 from N48.4 billion recorded in the same period of 2022.
Operating expenses increased by 20.6 percent to N24.43 billion in the first three months of 2023 from N20.26 billion recorded in the same quarter of 2022.
Revenue increased to N91.8 billion in the first three-month of 2023 from N90.6 billion recorded in the same period of last year.
“The achieved revenue was driven by further average price per tonne growth (+17.7 percent) offsetting higher-than-expected volume decline (-13.9 percent to 1.2Mt). Management explained that performance was constrained by the economic impact of the general elections and the shortage of cash in circulation following the CBN currency redesign policy,” CardinalStone said in a statement.
Total assets also saw a decline by 2.85 percent to N583.59 billion recorded in the first quarter of 2023 from N600.71 billion recorded in the same period of 2022.
Net cash flow used in investing activities recorded a negative of N7.29 billion in the first quarter of 2023 from N2.45 billion recorded in the first quarter of 2022.
Cash and cash equivalents at the end of the period increased by 175.7 percent to N104.88 billion from N 38.04 billion recorded in the same period of last year.
