Lafarge Africa increases profit by 29.02% to N32.787bn H1
By Motolani Oseni
Lafarge Africa reported an improved 2023 second-quarter results, showing a pre-tax profits growth of 29.02 per cent year on year, reaching N32.787 billion.
This took the half-year pre-tax profits to N55.315 billion versus N46.879 billion in the same period last year.
Analysis of the result showed that the growth in pre-tax profit was primarily fueled by the growth in finance income and a decline in finance costs.
The company recorded N1.912 billion in net foreign exchange gain and N1.239 billion in interest income from short-term fixed deposits and current account in the second quarter (Q2), contributing significantly to the 2,201.32% year-on-year (YoY) growth in finance income.
Additionally, the finance costs, which declined due to the decline in interest on borrowing and the absence of foreign exchange loss, also contributed. There was a 67% YoY decline in interest on borrowing and the absence of foreign exchange loss compared to N694 million recorded the previous year.
Lafarge Africa Plc. CEO, LoluAlade-Akinyemi commented: “I would like to thank all employees and stakeholders of Lafarge Africa for another quarter of strong results, despite the challenging economic environment. We remain focused on delivering sustainable value to all stakeholders as the market recovers for the rest of the year.
“We achieved strong top-line growth of 10.3 per cent in Q2 and 5.9 per cent in H1; Operating Profit growth of 13.3 per cent in Q2 and 7.7 per cent in H1, and Profit Before Tax improvement of 29 per cent in Q2 and 18% in H1. Owing to the expiration of the Pioneer Status Incentive, Q2 Profit After Tax growth was a muted 3.2 per cent.
READ ALSO: Group alleges campaign of calumny against Mele Kyari
“This is backed up by a strong Free Cash Flow position and healthy Balance Sheet. The recent launch of our Eco label cement brand re-affirms our commitment to delivering superior value to our customers. This new product has been certified to be eco-friendly with 30% lower carbon emission than the local industrial standard.
“Our strategic and cost management initiatives have contributed to improved results despite the challenges. We remain steadfast in our commitment to driving innovation and accelerating green growth in line with our sustainability ambitions and targets”, he said.
