Lafarge Africa Plc has reported a profit after tax of N57.3bn for the nine months ended September 30, 2024, marking a 46 per cent increase from the N39.3bn recorded in the corresponding period of 2023.
This growth was attributed to higher revenue, effective cost management, and increased operational efficiency during the review period.
In the company’s audited financial statements filed with the Nigeria Exchange Limited on Tuesday, the revenue for the nine months climbed to N479.9bn, reflecting a 66 per cent growth from the N289.1bn posted in the same period of 2023.
This surge was driven by higher sales volumes and improved pricing strategies.
Lafarge Africa is a Sub-Saharan African building materials company involved in cement, aggregates, and concrete.
Despite the increase in revenue, the cost of sales also rose to N246.6bn, up from N141bn in the previous year.
However, Lafarge Africa Plc’s gross profit expanded by 58 per cent to N233.4bn, compared to N148.1bn in 2023.
The company’s operating profit also saw an increase, rising to N126.6bn, representing an 83 per cent jump from N69.3bn in the previous year.
The growth in operating profit was supported by a reduction in impairment losses on receivables and a moderate increase in administrative expenses.
Finance costs, however, surged to N36.1bn in 2024 from N11.6bn in 2023, driven by higher interest rates and increased borrowings.
This partially offset the gains from improved revenue and cost management.
Nevertheless, profit before tax rose by 50 per cent to N91.5bn from N61.2bn in the prior year.
The basic earnings per share rose to 356 kobo from 244 kobo in the corresponding period of 2023, reflecting the improved bottom line. Lafarge Africa Plc’s performance during the review period reaffirms its commitment to delivering strong financial results despite prevailing economic conditions.
It was reported that Swiss cement maker Holcim will exit its Nigerian business through the sale of its nearly 84 per cent stake in Lafarge Africa to China’s Huaxin Cement, the firm announced in a statement on Sunday.
