Lafarge Africa Grows Profit by 157% to N8bn in First Quarter

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Goddy Egene

Lafarge Africa Plc has reported improved results for the first quarter (Q1) ended March 31, 2020, raising shareholders’ hope of good harvest at the end of the year.

The unaudited results showed that Lafarge Africa posted net sales of N63.696 billion, up from N58.016 billion in the corresponding period of 2019. Net profit jumped by 156.5 per cent, from N3,145 billion to N8.067 billion in 2020.

Commenting on the performance, the Group Chief Executive Officer, Khaled El Dokani, said: “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 turn around initiatives are effective and our strong balance sheet is mitigating the risks borne by the pandemic that has started hitting our country in March.”

According to him, 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 minimise the negative effects of the COVID-19 pandemic,” he said.

The Chairman of Lafarge Africa Plc, Mr. Mobolaji Balogun recently announced his voluntarily retire as chairman of the company and step down as member of the board of directors effective June 4, 2020. According to the company, Mr. Adebode Adefioye will succeed Balogun. He has over 32 years work experience in different industries and is a graduate of the University of Lagos with Masters of Science degree.

Commenting, Balogun said: “Having overseen the progress in our transformation plan, the clean-up of our balance sheet, its return to robust profitability, streamlining of our operations, the renewal of our board and the smooth chief executive officer (CEO) and chief financial officer (CFO) succession plan, it is with a deep sense of gratitude to God, that I feel fulfilled, in retiring as chairman, knowing that the board and our company is in very good shape. My thanks to all our staff, my colleagues on the board for their unwavering commitment and support. Lafarge Africa has enjoyed strong shareholder and market support, for which I remain grateful.