- Revenue declined by -2.2% to N213bn from N218bn in the previous quarter.
- Profit before tax stood at N17.9bn.
- Profit after tax grew by 91.7% to N15.5bn.
- Net Assets grew by 156.4% to N345bn from N135bn.
Lafarge Africa Plc reported net sales of N213.0 billion in the 2019 financial year compared with the N217.8 billion made in the prior year, indicating about 2.2 percent decline.
The cost of sales increased to N157.1 billion from N150.7 billion, while selling and marketing expenses gulped N5.1 billion in contrast to N3.9 billion a year earlier.
In the financial statements of the company for the year ended December 31, 2019, released on Monday, it was stated that the management trimmed the administrative costs to N17.6 billion in FY19 from N25.0 billion just as the other operating expenses were cut to N764.3 million from N1.1 billion.
Net debt reduced from N288.9bn to N37.1bn (-87.2% vs LY) further to the divestment from South Africa and the successful rights issue in 2019 The Cement Firm proposed dividend of N1.00 per share.
Khaled El Dokani, CEO of Lafarge Africa stated:
Our turnaround and cost-reduction strategy in FY 2019 and the divestment of the South African business, have delivered strong results. The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.
As the Coronavirus (COVID-19) pandemic now impacts Nigeria, Lafarge Africa has taken the necessary measures to protect the health of its employees, customers, suppliers, and other stakeholders.
The construction sector and construction sites are generally more resilient than other sectors and Lafarge Africa has a strengthened balance sheet and is well equipped to weather the storm. However, we are closely monitoring the evolving situation and the impact of the COVID-19 pandemic on the Nigerian market.
The Nigerian cement industry growth momentum is expected to slow down in FY 2020 compared to 2019 on the back of the COVID-19 pandemic and the challenging global macro-economic environment.
We have launched an action plan “HEALTH, COST & CASH” and will continue to focus on the implementation of our cost optimization initiatives during this period to minimize the impact on the business.”