Adefioye: Lafarge’s N2.00 Dividend Worthy Return to Shareholders
Kayode Tokede
The Chairman, Lafarge Africa Plc, Prince Adebode Adefioye has stated that the cement manufacturing company’s N2. 00kobo per ordinary of 50 kobo per share total dividend is a worthy return to shareholders who invested in its shares.
Adefioye who was speaking to shareholders at the company’s 63rd Annual General Meeting (AGM) held in Lagos, hinged the company’s success on the rising demand for cement as building and construction activities picked up nationwide.
According to him, “The cement industry experienced another year of strong growth, mainly attributable to increased government expenditure on infrastructure and improved real-estate investments by private and commercial home builders.”
According to Adefioye, the company benefited from these improved market conditions with volume and price growth; with net sales increasing by 27.1per cent compared with the previous year, to close at N293.1 billion.
“The positive impact of increased net sales, moderated cost of sales, selling, distribution and administrative expenses amidst inflation and devaluation pressures resulted in improved margins recorded for the year.
“Through effective governance frameworks, assessments, as well as monitoring and evaluation, we are entrenching a culture of ownership, ethics and corporate responsibility in our activities. We also continue to pursue and leverage strategic partnerships that help sustain value and with a positive impact on our stakeholder groups. We are providing thought leadership initiatives to strengthen our voice and position as a foremost company in Nigeria committed to Environmental, Social and Governance (ESG),” he remarked.
During the meeting, shareholders unanimously agreed on the proposed total dividend of 200k per share (Interim and Final Dividends) as the company reported a Profit After Tax (PAT) of 51 billion Naira, a 65.4per cent growth as against the previous year’s result.
While responding to Shareholders during the meeting, Country CEO, Lafarge Africa, Mr. Khaled El Dokani said, “Our 2021 result was a record one and the PAT also was the best profit declared in a decade. Our top-line was mainly driven by volume growth, as well as the price improvement that we have noticed throughout the year, both have contributed to the improvement on our topline compared to last year.”
El Dokani further remarked: “In 2021, the cement demand was fairly good, I believe the country showed extreme commitment towards developing the infrastructure across the board.”
He noted that the company’s performance has once again shown the tenacity of the board, management and employees in achieving the overall goal of creating value for its stakeholders. “Our journey has been one of resilience, integrity and innovation, as we strive to meet the needs of our customers while adapting to the changing economic situations and growing demand for sustainable practice in the construction industry. I sincerely thank the entire Lafarge Africa team for their contributions to these successful outcomes,” he added.
Also speaking at the event, a representative of the shareholders, Pastor Olagoke Olusegun commended Lafarge Africa Plc for sustaining profit and dividend payment despite the harsh and challenging economy experienced in the year 2021. “I want to commend the chairman and the board. We know where we were in 2019, so today is a day of celebration. The report we are considering today is excellent and the reason for this is the untiring efforts of the board and management.”
