Lafarge Africa Plc profit slips 6.5%

Lafarge Africa Plc profit slips 6.5%
27 October 2015

Lafarge Africa Plc has reported a profit after tax of NGN29bn (US$145.7m) for the nine months ended 31 September 2015, compared with NGN31bn recorded in the corresponding of 2014.

The company said Nigerian unit Ashaka Cement's numbers were affected by the unrest during the start of the year, explaining that Ashaka has since returned to normal operations. It added that industrial performance was strong, with stable plant operations across the board. The South African business continues to be cash generative and the Ashaka plant is now fully operational.

However, the volume slowdown impacted the profit, with after tax (PAT) profit from consolidated operations declining by 67 per cent to NGN3.5bn in the quarter.

Lafarge Africa said Unicem, which was included on an equity basis, brought the PAT to NGN3.3bn. "Unicem's operational performance was strong, but an unrealised exchange loss was reflected in the P&L as its foreign currency denominated borrowings, were slightly revaluated with the Naira movements. Cash flow from operations was robust at the end of the nine month period at NGN36.7bn," the company said.

Lafarge Africa concluded the second tranche of the acquisition of Four Mills of Nigeria 15 per cent stake in Unicem.

"This brings Lafarge Africa's ownership stake in Unicem to 50 per cent, while LafargeHolcim group owns the remaining 50 per cent. The acquisition has brought about an expansion in the Lafarge Africa scope in Nigeria. Unicem, the key cement player in the South South & South East market in Nigeria is now fully owned by the LafargeHolcim group," the company said.

Commenting on the results, the CEO, Lafarge Africa Plc,Peter Hoddinott said that: "in spite of the challenging business environment and competitive situation, our company has delivered a good performance during the year. Our business expansion is remarkable and we are optimistic that our company will continue to deliver strong value to our shareholders."

He further added that expansion plans are on track, with the aggregate business ramping up, new ready-mix plants being erected, and Unicem's second line set to come on-stream in 2016.

Published under Cement News

Tagged Under: Lafarge Africa Nigeria