Lafarge Africa Records 20 Percent Leap In Profit At N8.6 Billion In Q1, 2015

In spite of the general elections, market
uncertainty and keen competition
cement/construction sector, Lafarge Africa
yesterday announced a profit after tax of
N8.621 billion for the first quarter ended
March 31, 2015 from N7.202 billion in
the same period 2014 and N14.6 billion
cash from its operations.



Mr. Olusegun Osunkeye; Chairman, Board
of Directors, at the announcement stated
that the company has delivered a good
performance in spite of the general
elections and market uncertainty.

The cement industry which has
experienced an immense growth over the
past few years saw Lafarge Africa record
a revenue of N57 billion in the first
quarter of 2015, which is 15 per cent
higher than the preceding year of a little
over N48 billion.

Mr. Guillaume Roux; Group Managing
Director of the company stated that the
company achieved stability in its
operations, marked by solid performance.

According to him, the consolidation of our
businesses and expansion projects
presents an excellent foundation for
future growth.

“Our management team is fully mobilized
to deliver operational excellence whilst
also leveraging on the strength of the
Lafarge Group,’’ he said.

Mr. Olusegun Osunkeye noted that the
company expanded in the quarter to
commence aggregate business in the
country through a Nigerian Ready Mix
business. He explained that it is a
remarkable step for the company in
achieving its objectives of delivering
innovative and quality building solutions.

The statement released said that the
board of directors of the company
granted approval for a Mandatory Tender
Offer to all qualifying shareholders of
Ashaka Cement Plc in 2014.

“Consequently, the Tender Offer is now
concluded and regulatory approval has
been obtained for the approval of the
shares transferred”. Lafarge Africa
ownership stake in Ashaka Cement has
increased to 82.46 per cent from 58.61
per cent. We expect final regulatory
approval in the coming weeks.

Mr. Guillaume Roux pointed out that
Unicem had a strong operational
performance, with very solid volumes and
the company generated the strongest
profit margin in the group. However, he
added, the operation was affected by the
devaluation of the Naira, which resulted
in N8.0 billion Unrealized Exchange
Losses, posted in the first quarter.

Mr. Guillaume Roux added that the
company expects cement demand to
increase in both Nigeria and South Africa
in 2015. Which he attributed to the
increasing needs for housing and
infrastructures in Nigeria and the
presence of cash flow from South Africa.

On the future outlook, “2015 stands to be
an interesting year and we are very
confident about future performance. The
underlying growth trend in our sales
reflects the huge market opportunities for
cement sales and other business lines
such as Ready-Mix and Aggregates”.