Companies
Lafarge Africa is still playing catch up
Cement maker Lafarge Africa intends to expand its factories in the South West and Northern parts of the country once it cuts down on its debt. Chairman of the company, Bolaji Balogun disclosed this in a chat with Bloomberg.
“As soon as the debt becomes more comfortable, we don’t sit there, we will put the foot down on the next round of expansion”
He did not, however, disclose the volume by which the company plans to expand.
Lafarge has a production capacity of 10.8 million tonnes in Nigeria as at FY 2017.
Balogun also disclosed that the company is targeting a leverage ratio between 60-70% from its current levels of a 100%.
Proceeds from a ₦131 billion rights issue last year were used to pay down its debt.
Still playing catch up
The company’s expansion plans come after its competitors have rolled out theirs. BUA Cement has completed a 1.5 million tonne expansion of its Kalambaina cement plant in Sokoto, at an estimated cost of $350 million.
Dangote Cement, Nigeria’s largest cement producer in July last year unveiled plans to expand its plants in Nigeria.
The company currently has a production capacity of 29.3 million tonnes per annum in Nigeria, according to its FY 2017 investor presentation. Dangote Cement sold 12.9 million tonnes of cement last year.
Profit ratios tell the same story
Lafarge had gross profit margins of 16.97% and a net profit margin of 11.57%. Return on equity was 32.64%
CCNN had a gross profit margin of 33.94% and a net profit margin of 12.69%. Return on equity was 20.73%
Dangote Cement had a gross profit margin of 56.39% and a net profit margin of 25.35% and a Return on Equity (ROE) of 26.35%.
Gross profit margin is the percentage of revenue left after deducting the cost of goods sold.
Net profit margin is the amount of revenue left after all expenses have been deducted from sales.
Return on Equity is how much Naira the company generates as profit for every ₦1 of shareholders funds.
Q1 2018 results tell the same story
Q1 2018 results show the company is lagging behind its competitors. Revenue dropped from ₦81 billion in 2017 to ₦80 billion in 2018.
Revenue for Dangote Cement (the company) increased from ₦152 billion in 2017 to ₦173 billion in 2018.
Revenue for Sokoto Cement increased from ₦4.3 billion in 2017 to ₦5.3 billion in 2018.
Lafarge Africa PLC (Lafarge Africa) was incorporated in Nigeria on 26 February 1959 and commenced business on 10 January 1961.
The Company formerly known as Lafarge Cement WAPCO Nigeria Plc changed its name, following the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH), United Cement Company of Nigeria Limited (UNICEM), AshakaCem PLC (AshakaCem) and Atlas Cement Company Limited (Atlas).
Lafarge Africa shares are currently trading at ₦38.50, down 4.94% in today’s NSE trading session.
Companies
Lafarge Africa Plc. announces its board meeting and closed period for Q2 2020
The notification which was duly signed by General Counsel & Company Secretary.
Lafarge Africa Plc. notified the Nigerian Stock Exchange and the investing public that he closed period will commence on Wednesday, 8th July 2020 until the unaudited financial statement for the second quarter ended 30th June 2020, is released to the Nigerian Stock Exchange.
In a disclosure on the Nigerian Stock Exchange, it wrote: “We hereby notify the Nigerian Stock Exchange and the investing public that a meeting of the Board of Directors of Lafarge Africa Plc has been scheduled to hold on Thursday, 23rd July 2020 to consider the second quarter financial results of the Company for the quarter ended 30th June 2020.”
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The notification which was duly signed by General Counsel & Company Secretary, Mrs. Adewunmi Alode explained further stating that “Accordingly, no Director, employee, persons discharging managerial responsibility and Advisers of the Company and their connected persons may directly or indirectly deal in the shares of the Company in any manner during the closed period.”
Over the past few months, it made a few board changes with the retirement of two of its Non-Executive Directors, as well as the appointment of three new Directors. It had also spun off its South African subsidiary, Lafarge South Africa Holdings (LSAH), last year.
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Lafarge Africa’s Q1 2020 revenue was up 9.8% year-on-year to N63.7 billion, driven by higher Cement Sales (a figure up 11% year-on-year to N62.3 billion) which offset the weakness in Aggregate and Concrete (down 21% y/y to N1.4bn). Its EBITDA grew by 2.4% year-on-year to N19.3 billion as well. As at Tuesday the 7th of July, the share price of the company was N10.00.
Companies
AXA Mansard Insurance Plc gives notice of Annual General Meeting
The AGM will be live-streamed to enable shareholders and stakeholders participate.
Insurance firm, AXA Mansard Insurance Plc., has given notice of its board of its Annual General Meeting (AGM) scheduled for Wednesday, July 29, 2020, at 10:00 a.m.
The announcement which was disclosed by Nigerian Stock Exchange (NSE) in a corporate disclosure on July 7th, 2020 and signed by Company Secretary, Omowunmi Mabel Adewusi read, “Notice is hereby given that the twenty-eighth annual general meeting of AXA Mansard Insurance Plc. will hold at the Oriental Hotel, no. 3, Lekki Road, Victoria Island, Lagos on Wednesday, July 29, 2020, at 10:00 a.m.”
READ ALSO: AXA Mansard divests from its pension and real estate ventures
As noted, the purpose of the AGM is to transact the following business:
- To receive the Audited Financial Statements for the year ended December 31, 2019, and the Reports of the Directors, Auditors and Statutory Audit Committee thereon
- To authorise Directors to fix the remuneration of the Auditors
- To elect Directors and
- To elect members of the Statutory Audit Committee.
In order to ensure that all relevant stakeholders can be a part of the AGM, the company will also be streaming the AGM live. It noted that “This will enable shareholders and other stakeholders who will not be attending physically to follow the proceedings.”
The link for the live streaming of the Meeting will be made available on the Company’s website at www.axamansard.com.
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Recall that a few months ago, in March, the company’s Board of Directors announced the appointment of John Dickson as the company’s new Non-Executive Director. A month earlier, it also disclosed its plan to sell its pension management subsidiary (AXA Mansard Pensions Ltd) and some undisclosed real estate investments.
Its unaudited financials for the period Q1 2020 reveal a growth across revenue and profit lines. Gross written premium grew by 21% from N17.4 billion earned in Q1 2019 to N21 billion in Q1 2020. Profit for the year for the group grew by a commendable 120% from N890 million in Q1 2019 to N1.9 billion in Q1 2020.
As at Tuesday, the 7th of July when markets closed, the share price of the company was N1.59. The company’s EPS stood at 0.33 while its price to book ratio stood at 0.6082.
The board of directors of the Nigerian Social Insurance Trust Fund (NSITF) has revealed that it will investigate the activities of the suspended Managing Director, 3 Executive Directors, and 8 other senior management staff over financial breaches and gross misconduct.
This was disclosed by the Chairman of the board of NSITF, Mr. Austin Enajemo-Isire, in a statement in Enugu on Sunday July 5, 2020.
Enajemo-Isire said that the Managing Director and other top management staff of the organization would have the opportunity to clear themselves of any wrongdoing with the probe panel which was being set up.
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While reacting to claims that the suspension did not follow due process as President Muhammadu Buhari did not approve it, Enajemo-Isire said that the approval for the suspension of the affected staff had been conveyed to the Labour Minister in a correspondence referenced SGF. 47/511/T/99 of June 30, 2020.
According to the Chairman, “The minister has conveyed this approval and directives to me for necessary action in terms of setting up a board-driven investigative panel.
READ MORE: Nigeria’s debt rises to $79.5 billion, as debt to revenue ratio worsens
“This is to give the affected officers the opportunity to clear themselves of the financial and procurement breaches and acts of gross misconduct and other infractions that gave rise to their prima facie indictment.
“It is in this light that I have decided to call a virtual meeting of the management board on Tuesday, July 7, 2020, to consider the modalities for our action.”
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He, therefore, appealed to staffers of NSITF and their social partners to keep calm and exercise restraint.
A few days ago, Nairametrics reported the suspension of the Managing Director and some senior management staff over corruption allegations. However, the management in its reaction debunked that claim and said that the President did not approve their suspension but that rather, it was the sole decision of the Labour Minister, Chris Ngige, who they said was overreaching himself.
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