CORPORATE BRIEF: LAFARGE AFRICA PLC Q3 2017 Revenue and Net income came in at 38.9% and 102.5%

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Lafarge Africa Plc reported her unaudited Q3 ended September 30th 2017 results to the market on Friday, October 20, 2017. Revenue and net income came in at 38.9% and 102.5% respectively compared to Q3 ’16. 
Nigeria operations contributed 69.6% to the revenue while South Africa operations accounted for the remainder (30.4%).
The Company’s gearing is significantly high at 2.44x owing to a spike of 347.6% in short term borrowing. The borrowing came mostly from inter-party related loan which represents 80.8% of total current liabilities.
Key Highlights:
  • Lafarge Africa Plc Q3 ‘17 revenue and net income came in at 38.9% and 102.5% respectively compared to Q3 ’16.
  • Nigerian operations contributed 69.6% to the revenue while South Africa operations accounted for the remainder (30.4%).
  • The company’s gearing is significantly high at 2.44x owing to a spike of 347.6% in short term borrowing. The borrowing came mostly from inter-party related loan which represents 80.8% of total current liabilities.
  • The cost of servicing borrowed fund spiked by 134.1% and eat up 94.1% of operating income. This was a major strain to weak net income reported.
  • The Company is on the verge of raising capital through Rights Issue of N131.65bn. If fully subscribed, it could help to offset some of existing obligations.
Kindly click on this  link  to see full details on the Corporate Brief of the firm.
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