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Lafarge Africa Plc posts N213 billion revenue, profit up by N17 billion in 2019

Lafarge Africa Group Plc has announced its 2019 financial report, as it posted a profit before minimum tax of N17.2 billion in 2019, compared to a loss before minimum tax of N1.5 billion in 2018.

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Lafarge Africa provides grant for startups, Lafarge Africa’s latest earnings report reveals 8.5% decline in gross profit , Lafarge Africa gets new CFO one month after resignation of former finance director, Lafarge Plc reveals why it invited Italian man with Coronavirus to Nigeria, Lafarage Africa group Plc posts a revenue of N213 billion in 2019, profit up N17 billion

Lafarge Africa Group Plc has announced its 2019 financial report, as it posted a profit before minimum tax of N17.2 billion in 2019, compared to a loss before minimum tax of N1.5 billion in 2018.

Its Profit from continuing operation closed at N15.5 billion in 2019 as against a loss of N8.1 billion during the comparable period in 2018. The operating Profit for 2019 stood at N34.9 billion, as compared to N38.5 billion in 2018.

It posted a revenue of N213 billion as compared to N217 billion recorded in 2018. The cost of sales also increased to N157 billion as against 150.7 billion reported during the comparable period in 2018.

In addition, Lafarge Africa Group’s audited financial results showed its selling and marketing cost increased to N5 billion during the period under review compared to N3.8 billion as of 2018.

[READ MORE: FCMB Group records N188bn revenue, grows Profit to N20.1billion)

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Administrative expenses also reduced greatly to 17.6 billion in the year 2019, from N24.9 billion during the comparable period last year.

Khaled El Dokani, CCEO of Lafarge Africa stated: “Our turnaround and cost-reduction strategy in FY 2019 and the divestment of the South African business, have delivered strong results. The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.”

See full report here

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About Lafarge Africa Plc: The company is a member of the LafargeHolcim Group – the biggest building and concrete solutions company in the world. It is a publicly quoted company on the Nigerian Stock Exchange (NSE) and serves Nigeria and South Africa with a wide range of building and construction solutions designed to meet housing and construction needs from small projects like individual home buildings to major construction and infrastructure projects.

Olumide Adesina is a French-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment Trading. Member of the Chartered Financial Analyst Society. Behavioral Finance, Duke University. You can follow Olumide on twitter @tokunboadesina or email [email protected]

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Companies

Dangote Sugar lists additional ordinary shares on NSE

This arose from the Scheme of Merger between Dangote Sugar Refinery Plc and Savannah Sugar Company Limited (SSCL).

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Dangote Sugar lists additional ordinary shares on NSE

Dangote Sugar refinery Plc (DSR) a major subsidiary of the Dangote Group, has disclosed that it has listed 146,878,241 additional ordinary shares on the Nigerian Stock Exchange (NSE), as a result of the recent merger with Savannah Sugar Company Limited.

This disclosure signed by Head, Listings Regulation Department, Godstime Iwenekhai, was released during trading hours on Wednesday.

In line with the resolution passed at the Court-Ordered meeting of members of Dangote Sugar Refinery Plc on the 9th of July 2020, the additional shares listed on the Exchange arose from the Scheme of Merger between Dangote Sugar Refinery Plc and Savannah Sugar Company Limited (SSCL).

The additional 146,878,241 ordinary shares of 50 kobo listed are in consideration for the transfer by SSCL of all its assets, liabilities and business undertakings, including real property and intellectual property rights to DSR.

Hence, these shares shall be issued and allotted to the shareholders of SSCL (The Scheme Shareholders), in place of 162,756,968 ordinary shares held by the Scheme Shareholders in SSCL as at close of business on the terminal Date, when Dangote Sugar merged with Savannah Sugar Company Limited.

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(READ MORE:First Bank tops as Nigerian banks record lower E-business income)

With the listing of the additional 146,878,241 ordinary shares, the total issued and fully paid-up shares of Dangote Sugar Refinery Plc has now increased from 12,000,000,000 to 12,146,878,241 ordinary shares of 50 kobo each.

Financial performance of Dangote Sugar Refinery Plc

Results for the first half of 2020 ended June 30, 2020, show revenue increased from N80.363 billion in the corresponding period of 2019 to N103 billion, as the company continue to benefit from border closure.

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However, the profit of the company in H1 2020 was marginally higher than the profit in the corresponding period of 2019, as a result of higher raw material and consumables costs which rose faster than the increase in revenue.

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Companies

Dangote Cement to extend clinker export to other African countries 

Dangote is on course to sell more clinker across West Africa and commence shipment to Central Africa in H2 2020. 

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Dangote Cement Plc. appoints Ms. Berlina Moroole as non-Executive Director

The Management of Africa’s largest cement producer, Dangote Cement Plc (DCP), disclosed during a virtual event yesterday, that the cement producer is set to commence clinker export to other African countries within the next few weeks. 

The Acting Group CFO, Guillaume Moyen, made this known in his presentation at the joint virtual event with NSE, tagged “Facts Behind the Figures and Sustainability report’’ on Wednesday24th September, 2020. 

Backstory: In its half-year report, the Management of Dangote disclosed that on 12 June 2020, the maiden shipment of 27.8Kt of clinker from Nigeria to Senegal left the Apapa Export Terminal. 

READ: Dangote Cement’s N100 billion CP admitted on FMDQ Securities Exchange

The Management reiterated that the company is on course to sell more clinker across West Africa, and commence shipment to Central Africa in H2 2020. As it is in line with the Group’s vision of making West and Central Africa, cement and clinker independent, with Nigeria the main export hub. 

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The absence of limestone in much of West Africa, especially those in the coastal states, forces those countries to import bulk cement and clinker from Asia and Europe, and this is quite expensive. 

READ: BUA Cement Plc posts impressive unaudited H1, 2020 financial results

However, Dangote Cement plans an exporttoimport strategypositioning Nigeria as the main export hub of the continent, in a bid to serve West and Central Africa countries from Nigerian factories, making the region cement and clinker independent. 

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This is consistent with the Group’s vision of cementing Africa’s economic independence, as this would lead to lower clinker cost for pan-African operations, due to the proximity of Nigeria to these countries, as clinker landing cost will be cheaper. 

READ: Nigerian billionaires lose billions amid COVID-19 pandemic

The Management emphasized that this is possible, as Nigeria can serve a potential market of 15 countries, with over 350 million people, given the county’s relative abundance of quality limestone, especially in key Southern regions. 

It is important to note that DCP’s clinker volume, according to figures contained in its H1 2020 results, has increased to 60Kt from 12kt in H1 2019, which translates to 400% increase. 

The benefits of DCP’s export strategy 

It is noteworthy that the innovative strategy of Dangote Cement Plc is expected to; 

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  • Cement Africa’s economic independence, and contribute to the improvement of continental, regional, and intra-regional trade, as the company seeks to make regional and continental free trade agreement a reality. 
  • Ensure that the increase in production due to exports, leads to increase in capacity utilization in the Nigerian operation, and in turn, reduces fixed cost per tonnes 
  • Increase foreign revenue exchange for the Nigerian operation, and offset foreign exchange risks. 
  • Reduce clinker landing cost, by leveraging on the proximity of Nigeria to other African countries. 

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Companies

Fidelity Bank to raise N50 billion in bonds in Q4 to refinance existing debts

The new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.

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Fidelity Bank Plc ,CEO Nnamdi Okonkwo, Fidelity Bank Plc growth plan, SMEs funding

One of Nigeria’s second-tier commercial banks, Fidelity Bank Plc, has concluded plans to issue up to N50 billion ($131.3 million) in local bonds by the fourth quarter of 2020, in order to refinance existing debts as the yields drop.

The disclosure was made by the Chief Operations and Information Officer, Gbolahan Joshua, during an analyst call on Tuesday, September 8, 2020.

The crash of crude oil price globally, which was triggered by the novel coronavirus pandemic, has led to a decline in bond yields on the local debt market. This has made foreign investors to dump their local assets, leaving excess liquidity in the money market. This has also put a lot of pressure on the foreign exchange market as they look for dollars to repatriate their funds.

READ: Guinness Nigeria finding it hard to refinance its loans due to dollar scarcity

The Fidelity Bank top executive disclosed that the new issue will be made to redeem the existing N30 billion bond which was issued at 16.48%.

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The global economic situation has seen yields in the debt market drop from as high as 18% about 3 years ago to less than 5% for the one-year treasury bill.

READ: GTBank, Zenith Bank, UBA record losses, investors down by N12.2 billion

Fidelity Bank had revealed that it expected to see a 15% drop in profit this year when compared to 2019 result due to the coronavirus pandemic. Its profit after tax increased by 21.9% to N12 billion for the half-year 2020.

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The second-tier bank also disclosed that its income declined in the second quarter due to a downward review of lending rates on loans as a result of the economic downturn.

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