Lafarge Africa grows Q3 revenue by 130%

Building materials major, Lafarge Africa Plc has said that it recorded 130 per cent growth in its revenue for the third quarter (Q3) ended September 30, 2014.

According to a statement issued by the company at the weekend, the Q3 revenue appreciated by 130 per cent to N159 billion in the review period of 2014.

In the same vein, the result showed that the group generated a net income of N31.5 billion in the review period, indicating 84 per cent increase year-on-year.

Again, the company stated that the Q3 profit closed at N10.07 billion and that the group posted cash position of N49.2 billion in the period.

More so, Lafarge Africa announced that post-tax profit from continuing operations stood at N32 billion, representing an operational increase of 23 per cent, when adjusting 2013 for the one-off profit of N22 billion arising from the disposal of Pan African Cement Limited in South Africa and N3.2 billion prior year’s tax credit in 2013.

“Overall year-to-date profit increased by 84 per cent versus the actual profit posted last year, after adjusting for one-offs,” the company disclosed.

In a related development, the group revealed that it has paid off N11.9 billion bond, which it raised in 2011 to refinance the Lakatabu 2.5 million tonnes capacity expansion, on October 10, 2014.

Recall that Lafarge Africa, formerly known as Lafarge Cement Wapco Nigeria Plc, combined of all Lafarge’s Nigerian operations: Ashakacem Plc, United Cement Company Limited, Atlas Cement Company Limited, and its South African assets, in order to create a stronger platform for growth in Sub-Saharan Africa, with value creating opportunities.

Commenting on the result, the Chairman, Board of Directors, Lafarge Africa, Chief Olusegun Osunkeye, said: “the result, the first to be published by the company since its creation in September, is solid. This is a testimony to the soundness of the transaction and business.”

According to the Group Managing Director and Chief Executive Officer, Lafarge Africa Plc, Mr Guillaume Roux, the performance demonstrated the company’s commitment to operational excellence.

He added, “We will continue to leverage the opportunities provided by our combined operations to provide a differentiated product suite with a wider reach within our markets.”

On the outlook, the company explained that it was optimistic about the future and would continue to expand its operations and spread through the provision of innovative and quality building materials products designed to meet the specific and differentiated needs of its customers.

It also said it would continue to leverage on the strength and pedigree of Lafarge Group, a world leader in building materials.

Lafarge Africa, listed on the building materials sub-sector in the industrial goods sector of the Nigerian Stock Exchanges enjoys a market capitalisation of N330.15 billion.

Its earnings per share (EPS), which is the monetary value of earnings per each outstanding share of a company’s common stock, closed at N8.10 as at Friday, October 31,2014, where as its share price on the same day settled at N109.99.

Furthermore, the company’s price to earnings (P.E) ratio, which refers to a valuation ratio of a company’s current share price compared to its per-share earnings stood at N13.57 within the review period.

Source : Tribune

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