The Board of Directors of AshakaCem Plc, a subsidiary of Lafarge Africa Plc, has announced N2billion as profit after tax for the year ended 2016.
This is against the N2.7 billion profit it posted in 2015.
The company’s acting Chairman, Mrs. Edith Onwuchekwa who gave this disclosure at its 42nd Annual General Meeting in Abuja, said the devaluation of the naira and its consequent impact on operating costs had reduced the company’s profit before tax by 17 per cent.
Thankfully, she said the company was able to save N2.6 billion by leveraging with Lafarge Africa PLC to reduce commercial and information technology activities.
She added that despite the challenging economic environment in 2016, the company maintained optimal operation as production was on schedule with 648,585 metric tonnes cement dispatches, which was 6.5% higher than the 609,000 metric tonnes dispatched in 2015.
Onwuchekwa said: “2016 was a difficult and challenging year, but we had serious commitment from management and staff and also from stakeholders. You could see that during my statement, I appreciated the management and stakeholders because they contributed to help us wade through the storm in 2016 and we were able to declare profitability.
She said the company has unanimously endorsed a dividend payment of N336 million at 15 kobo on every ordinary share in issue for the period 2016 financial year to its shareholders.
In his remarks, the company’s Managing Director, Rabiu Umar, said Ashakacem expects a positive market growth in during the year.
“We expect positive market growth during the year. The early approval of federal government budget in the year, as well as the24% increase in allocation for capital expenditure vis-à-vis 2016 would definitely boost spending on infrastructure and the revenues of cement manufacturers. We are well positioned to take advantage of this as the Star of the North.”