Lafarge Africa delivered strong results in FY 2020
Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim, Listed on the Nigerian Stock Exchange, released its Annual Report ended 31 December 2020 to the investing public on March 24, 2021.
From the released result, the cement manufacturer saw an 8.25% increase in revenue from ₦212.999Bn in FY’2019 to ₦230.57Bn in FY’2020.
Amidst the COVID-19 pandemic, which triggered inflationary and Naira devaluation pressures and production challenges the company, Profit After Tax (PAT) finally increased by 98.75% from (₦15.52bn to ₦30.84bn) and Profit Before Tax (PBT) also rose by 109.99% (from ₦17.89bn to ₦37.57bn).
A closer analysis by Brand Spur revealed that the company’s net sales up 8.3% vs PY1 with recurring EBIT up 30.8% vs PY1. Lafarge Africa recorded a robust free cash flow generation of N47.4bn and a healthy balance sheet with a net cash position of N3.6bn.
Khaled El Dokani, CEO of Lafarge Africa stated:
“Our “HEALTH, COST & CASH” action plan delivered results in 2020 amidst the COVID-19 pandemic, which triggered inflationary and Naira devaluation pressures and production challenges.
Full-year 2020 results remained resilient, with net sales of +8.3%, recurring EBIT of +30.8% and net income of +98.8%. We are proud of our people, who stand with our communities, and of our sustainability commitments to accelerate the net-zero pledge through affordable clean energy and our agri-ecology footprint”.
The Board of Directors is proposing a gross dividend of 100k (2019: 100K) on every ordinary share in issue amounting to ₦16,107,795,721.00 (2019: ₦16,107,795,721.00). The total dividend proposed if approved by shareholders is payable from the pioneer profits and not subject to deduction of withholding tax.
The dividend is subject to approval by the shareholders at the Annual General meeting. The dividend income for Group and Company is shown in Note 10.4 of the financial statements.
- Focus on the implementation of our strategy.
- Execution of the “HEALTH, COST & CASH” action plan.