Lafarge Africa’s Sales up by 36% to N299bn in 2017

Business News

“INfull year results for the year ended December 2017, Lafarge Africa Plc recorded net sales of N299 billion. This represents a 36% growth relative to the corresponding period in 2016. RecurringEarnings before interest, tax, depreciation and amortization (EBITDA)doubled to N57.6billion,”

The CEO of Lafarge Africa Plc Michel Puchercos attributed the strong margins in the Nigerian business to cost initiatives and more favorable pricing. He stated that industrial operations in 2017 were stable with plants operating at high reliability levels.

He also noted that the energy optimization plan for the company has been successful with increased use of Alternative Fuel and Coal to offset gas shortages in operations in the West while plant operations in the eastern and northern part of the country relied mainly on gas and coal.

He said these logistic, commercial and operational initiatives helped to sustain market share in the year under review.

Mr. Puchercos also disclosed that the South African business thrived in a challenging business environment and the operations are set to stabilize in year 2018.

“The Lichtenburg plant returned to normal operations in the course of the year. A turnaround plan was initiated in order to transform the company’s operations,” he said.

According to him, key projects in Nigeria implemented in the year under review such as the Road in Calabar and of mothballed assets in South Africa led to an impairment of N19. 1billion.

“The combination of these impairments and the net loss in South Africa of N18.7billion led to a Group Net loss of N34.6 billion compared to a profit of N16.8billion in 2016,” he said.

 

Outlook

The expected recovery in the macroeconomic environment in Nigeria is likely to have a positive impact in the overall cement market in Nigeria. Our Business turnaround actions will be

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