Lafarge Africa reports 156.5% increase in profit to N8.07bn

Lafarge Africa Plc in its unaudited result and accounts for the first quarter (Q1) ended March 31, 2020 reported 156.5 per cent increase in profit to N8.07billion as against N3.14billion reported in Q1 2019.

From the unaudited results to the Nigerian Stock Exchange (NSE), the cement manufacturing company profit before tax also increased by 104.5 per cent to N9.38billion compared to N4.59billion reported in Q1 2019.

Our correspondent gathered that the increase in profits can be attributable to a significant decline in finance cost and a modest increase in revenue.

The company reported 69.1 per cent decline in finance cost to N2.57billion in Q1 2020 as against N8.3 billion reported in Q1 2020 while revenue for the period rose by nearly 10 per cent to N63.7billion from N58.02billion reported in prior’s year first-quarter results.

From balance sheets position, Lafarge Africa’s total assets dropped by 1.1 per cent to N491.8billion as at March 31, 2020 from N497.15billion reported in full year ended December 31, 2019 results.

The CCEO of Lafarge Africa, Khaled El Dokani in a statement stated that, “I am proud of the plan Lafarge Africa has implemented to protect the health of our people while supporting our partners and communities. The first-quarter results confirm that our turnaround initiatives are effective and our strong balance sheet is mitigating the risks are borne by the pandemic that has started hitting our country in March.”

The company out outlook said, “COVID-19 impact on the 2020 results cannot be reasonably estimated at this stage, but long-term prospects remains positive.

“The company expects that the public safety measures issued by the federal and state authorities in Nigeria and around the world will adversely affect the company’s results in Q2, 2020.

“Despite short-term disruptions, Lafarge Africa Plc is however confident in the underlying resilience of its businesses and operating model as the company has developed robust cost and cash optimization initiatives.

“The Lafarge Africa’s strong balance sheet and reduced cost base will also help minimize the negative effects of the COVID-19 pandemic.”