Lafarge Africa Plc has declared N55.32 billion profit before tax in half year (H1) ended June 30, 2023, an increase of 18per cent from N46.88 billion reported in half year ended June 30, 2022.
The cement maker on the Nigerian Exchange Limited (NGX) reported N35.48billion profit after tax in H1 2023, a decline of 5.2 per cent from N37.41billion in H1 2022, attributable to 109.5per cent growth in tax expenses in the period under review to N19.84billion as against N9.47billion in H1 2022.
Lafarge Africa, however, reported N197.68 billion revenue in H1 2023, a nearly six per cent increase from N186.6billion in H1 2022.
It maintained a healthy balance sheet with a strong net cash of N140.6billion; with H1 2023 free cash Flow closing at N81.8billion. The Group closed June 30, 22023 with N654.7billion total assets from N600.711billion reported in full year ended December 31, 2022.
The Chief Executive Officer, Lafarge Africa. Lolu Alade-Akinyemi in a statement said, “I would like to thank all employees and stakeholders of Lafarge Africa for another quarter of strong results, despite the challenging economic environment. We remain focused on delivering sustainable value to all stakeholders as the market recovers for the rest of the year.
“We achieved strong top-line growth of 10.3per cent in Q2 and 5.9per cent in H1; Operating Profit growth of 13.3per cent in Q2 and 7.7 per cent in H1, and Profit Before Tax improvement of 29per cent in Q2 and 18 in H1.
“Owing to the expiration of the Pioneer Status Incentive, Q2 Profit After Tax growth was a muted 3.2per cent. This is backed up by a strong Free Cash Flow position and healthy Balance Sheet. The recent launch of our Eco label cement brand re-affirms our commitment to delivering superior value to our customers. This new product has been certified to be eco-friendly with 30per cent lower carbon emission than the local industrial standard.
“Our strategic and cost management initiatives have contributed to improved results despite the challenges. We remain steadfast in our commitment to driving innovation and accelerating green growth in line with our sustainability ambitions and targets.”
On the outlook, the cement producing company said Nigerian infrastructure and construction sector is expected to continue to grow despite inflationary pressure on purchasing power.
“As a result, we maintain our positive outlook, with market recovery expected for the second half of the year. We will continue to maximize volume opportunities across our markets and actively manage our costs.
“The company remains committed to its sustainability ambitions and strategy of ‘Accelerating Green Growth’ through innovative building solutions and delivery of stakeholder value,” the statement added.