Lafarge Africa Declares N51.14bn PAT Amid Foreign Exchange Loss

Lafarge Africa Plc has announced on the Nigerian Exchange Limited (NGX) a 4.7 per cent decline in profit to N51.14 billion in its audited result and accounts for the full year ended December 31, 2023 from N53.65billion reported in 2022.

The cement maker saw its profit dropping by 4.7 per cent over N21.04billion foreign exchange loss reported in 2023 from N13.13billion in 2022 and N27.64billion income tax expense in 2023 from N14.66billion in 2022.

This brings Lafarge Africa profit before tax to N80.7 billion in 2023, an increase of 15.7per cent from N69.75 billion reported in 2022.

Upon decline in profit, the Board of directors of Lafarge Africa proposed a gross dividend of N1.90kobo (2022: N2. 00kobo) on every ordinary share in issue, amounting to N30.6billion in 2023 from N32.22 billion in 2022.

Lafarge Africa declared net sales of N405.5 billion in 2023, a growth of 8.6 per cent from N373.25billion in 2022, driven by cement sales that moved from N361.96 billion in 2022 to N 392.57billion in 2023.

The CEO of Lafarge Africa, Lolu Alade-Akinyemi in a statement said, “The fundamentals of our business remain strong. In spite of extremely challenging macroeconomic headwinds, we grew the top line by 8.6per cent and improved Operating Margin from 22.6per cent to 25.3per cent in 2023.

“In the face of very material FX devaluation losses and higher effective tax rate, Profit After Tax declined YoY by 4.7per cent. Our performance was largely impacted by spiralling inflation and unprecedented Naira devaluation, with the attendant pressure on energy and supply chain costs.

“Despite these challenges, we continue to maintain a strong free cash flow position and a strong balance sheet, positioning us for sustainable growth over the medium to long term.

“We are committed to delivering sustainable value to all stakeholders in the coming years, as we have done historically. I would like to thank all employees and stakeholders of Lafarge Africa for their commitment over the years.” On outlook for this year, the company said, “The Nigerian Infrastructure and Construction Sector is expected to continue growing despite inflationary pressure and currency depreciation affecting the economy. As a result, we maintain our positive outlook, expecting increased demand in 2024 as the economy picks up.