Lafarge Africa PLC to reap gains from forex reforms
A major player in cement manufacturing on the continent, Lafarge Africa PLC, has provided update on its profit expectations for the second quarter of 2016 to the Nigerian Stock Exchange recently, highlighting the impact the recent Naira value adjustment to major international currencies by the Central Bank (CBN) will have on its financials.
The company’s profit update was based on its unaudited financial statements for the period ended June 30, 2016.
The Lafarge Africa PLC Board of Directors remained optimistic about the company’s prospects in 2016, noting that the impact of the Naira adjustment was seen as a one-off event which has durable future benefits.
The records showed that Lafarge has a total of $495m in external borrowing on its book which were debts contracted by UNICEM, one of its operating companies which it acquired 100 per cent stakes in 2015.
“With the reform of the interbank forex market boosting the security of investments and interest of foreign financial institutions in the Nigerian market, Lafarge Africa PLC is confident it can refinance UNICEM’S $495 loan by the end of 2016, thus making significant savings on interest payments,” the company said.
Prior to the completion of the LafargeHolcim merger in 2015, Lafarge Africa’s stake in UNICEM was 53 per cent.