Lafarge Africa Plc has recorded net sales of N162 billion for the first half 2018 and N82 billion for the second quarter of 2018. This is an increase of 5% and 11% respectively compared to the corresponding period in 2017, mainly driven by Nigeria’s strong operational performance.
The CEO of Lafarge Africa Plc Mr. Michel Puchercos said: “We continued to deliver strong margins in our Nigerian business as a result of our commercial and energy strategies. At the same time, our results were still affected by the performance in South
Lafarge Africa Plc’s commercial, logistic and industrial operations in Q2 2018 continued to improve strongly despite inflation and Foreign Exchange impacts. “We continued to deliver on our energy improvement plan, with notable increased use of Alternative Fuel and Coal. Our logistics and commercial initiatives such as improved product visibility and fast tracking of the new route to market also contributed to the strong performance in the second quarter” said Mr. Puchercos.
The Lafarge Africa CEO disclosed that the South Africa operations are focused on executing its turnaround plan with focus on improvement of margins.
Full year outlook for the cement market in Nigeria remains favourable with positive signs of recovery since March. Lafarge Africa Plc’s business turnaround actions will continue to deliver in 2018 through energy optimization as well as commercial and logistic improvement.
For South Africa the economy is expected to grow in 2018. The turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilsation. The overall goal is to create shareholder value by returning the SA business to profitability through improved margins.
The Board of Lafarge Africa PLC has approved the reduction of existing shareholder loan to $293m and a Right Issue of up to N90bn, subject to all corporate and regulatory approvals. The restructuring is aimed at reducing the Company’s leverage position as well as strengthening its profitability.
About Lafarge Africa Plc
Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim, a world leader in building materials. Listed on the Nigerian Stock Exchange with a presence in Africa’s two largest economies, Nigeria and South Africa, Lafarge Africa is actively participating in the urbanization and economic growth of Africa.
Combining its operations in Nigeria – Ewekoro and Sagamu plants in Ogun State, Ashakacem in Gombe State, Mfamosing in Cross Rivers State, Atlas cement in Rivers State and Ready-Mix Nigeria with its varied operations in South Africa, Lafarge Africa has a current installed cement capacity of 14.8Mtpa. This is in addition to strong market leading positions in Aggregates, Ready mix concrete and Fly Ash.
Lafarge Africa leverages on its innovative expertise to provide valued added products and services solutions in the building and construction industry in Sub-Saharan Africa.
LafargeHolcim is the leading global building materials and solutions company serving masons, builders, architects and engineers all over the world. The Group is organized in four business segments – Cement, Aggregates, Ready-mix Concrete and Solutions & Products – and is a partner for clients ranging from affordable housing and small, local projects to the biggest, most technically and architecturally challenging infrastructure projects. As urbanization increasingly impacts people and the planet, the Group provides innovative products and building solutions with a clear commitment to social and environmental sustainability. With leading positions in all regions, LafargeHolcim employs around 80,000 employees in more than 80 countries and has a portfolio that is equally balanced between developing and mature markets.