A Glance: Lafarge Africa Plc Q3 ended Sept 2017
- Lafarge Africa Plc Q3 ‘17 revenue and net income came in at 38.9% and 102.5% respectively compared to Q3 ’16.
- Nigerian operations contributed 69.6% to the revenue while South Africa operations accounted for the remainder (30.4%).
- The company’s gearing is significantly high at 2.44x owing to a spike of 347.6% in short term borrowing. The borrowing came mostly from inter-party related loan which represents 80.8% of total current liabilities.
- The cost of servicing borrowed fund spiked by 134.1% and eat up 94.1% of operating income. This was a major strain to weak net income reported.
- The Company is on the verge of raising capital through Rights Issue of N131.65bn. If fully subscribed, it could help to offset some of existing obligations.
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