Lafarge posts N72bn revenue
Lafarge Africa Plc has recorded net sales of N72bn for the third quarter of 2018 and N234bn for the nine-month period ended September 30, 2018.
The firm, in its third quarter financial report, which was made available to the Nigerian Stock Exchange on Wednesday, said the Q3 revenue was an increase of five per cent over that of the same periods in 2017.
The firm said its positive performance in Q3 was mainly driven by strong volume growth in Nigeria and favourable pricing trends in South Africa.
It said its earnings before interest, tax, depreciation and amortisation for the third quarter increased significantly as a result of improved performance in South Africa, while it was down for the nine-month period due to South Africa’s performance in the first two quarters of 2018.
The Chief Executive Officer, Lafarge Africa, Mr Michel Puchercos, said in a statement that the company continued to deliver strong margins in its Nigerian business as a result of its successful commercial strategies with improved product visibility and the fast tracking of the new route to market.
He said the energy efficiency plan translated in increased use of alternative fuel and coal, adding that the South African operations delivered first positive recurring EBITDA and was focused on executing its turnaround plan.’’
Puchercos stated that the company successfully commissioned a new grinding station in Ghana with a capacity of 600KT.
He said, “Going forward, the company’s outlook for the cement market in Nigeria remains favourable in Q4. In South Africa, it expects the execution of its turnaround plan will continue to yield positive results. All product lines are expected to contribute to the performance.”
“In September, the board of Lafarge Africa Plc approved the refinancing of the shareholder loan to $293m with longer maturity and a rights issue of up to N90bn.”
The Chief Financial Officer, Lafarge Africa, Bruno Bayet, said, the company’s restructuring was aimed at reducing the its leverage position as well as strengthening its profitability.