Turnaround Plan Delivers 91.6% Income Growth for Lafarge in 2019
These are evident in its 2019 full-year financial statement posted on the website of the Nigerian Stock Exchange on Monday, April 6, 2020.
Analysis of the results showed that Lafarge Africa Plc recorded a strong net income, posting a 91.6% growth from N8.1 billion in 2018 to N15.52 billion in the current year. Last year, the company divested from its South African business.
Khaled El Dokani, Country CEO of Lafarge Africa, said the company turnaround strategy for 2019 delivered a strong financial result for the year. “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,” Dokani added.
Highlights of the Lafarge’s 2019 financial results:
Net debt reduced from N288.9 billion to N37.1 billion (-87.2% vs LY) as a result of the divestment from South Africa and the successful rights issue in 2019
Revenue stood at N213 billion (FY 2018: N217 billion), representing a 2.21% decline
Profit before tax surged by more than 1000% to N17.89 billion from N1.51 billion loss posted in 2018.
Profit after tax increased by 91.64% to N15.52 billion in 2019 from N8.10 billion profit recorded last year.
The company gained N99.59 billion from discontinued operation during the year.
The company’s total equity also increased by 156.36% to N344.91 billion in FY 2019 compared to N134.54 billion in 2018.
Lafarge Plc proposes dividend of N1.00 per share.
“We are closely monitoring 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,” the company’s CEO said.
Looking Ahead of 2020 Financial Year Amid the Impact of Coronavirus on the Nigerian market
Amid the global coronavirus pandemic, Lafarge Africa Plc says necessary measures are in place to protect the health of its employees, customers, suppliers, and other stakeholders. With a strong balance sheet, the company said ‘it is well-positioned to weather the storm’.
Lafarge Launches Action Plan “HEALTH, COST & CASH”, Supports Nigeria’s COVID-19 Efforts
To minimise the impact of coronavirus on the business, the company has launched an action plan “HEALTH, COST & CASH” through cost optimisation initiatives.
On Monday, it also announced donations to support Nigeria’s capacity to combat the COVID-19 pandemic. Among these donations include the use of three of its facilities in host states for use as isolation centres, equipment for facilities, product donations for infrastructural support including generators, ambulances, and critical personal protection equipment (PPE) for professionals at the forefront.
