Lafarge Africa Plc has released its financial result for the year 2022.
The report shows that the company reported a profit after tax of N53.6 billion, marking a 5.18% increase from the amount it reported in the previous year.
The result is summarized as follows:
Revenue:
- FY 2021: N373.244 billion
- FY 2022:N293.086 billion
- % Change: +27.3%
Gross Profit:
- FY 2021: N196.221 billion
- FY 2022: N142.580 billion
- % Change: +37.6%
Operating Profit:
- FY 2021: N84.193 billion
- FY 2022: N65.107 billion
- % Change: +29.3%
Net finance costs:
- FY 2021: N14.449 billion
- FY 2022:N3.536 billion
- % Change: +308.6
Profit before minimum tax
- FY 2021: N69.744 billion
- FY 2022: N62.254 billion
- % Change: +12.0%
Profit for the year:
- FY 2021: N53.647 billion
- FY 2022: N51.004 billion
- % Change: +5.18%
Earnigs per shares (Basic and Diluted):
- FY 2021: N333
- FY 2022: N317
- % Change: +5.04%
Bottomline: The improvement in profit appears to be driven by an increase in revenue for the period amid the inflation and FX situation. This is as the company witnessed increasing sales of cement as well as ready mixed and other products established for the business of concrete.
CEO’s Comment: Khaled El Dokani, CEO of Lafarge Africa noted that the worsening exchange rate situation affected its net income growth in 2022. He said:
- “In 2022, we recorded 27.3% and 29.3% improvement in net sales and recurring EBIT respectively, compared to FY 2021 results. The worsening exchange rate situation led to revaluation losses, thereby constraining our Net Income growth to 5.2%. We remain committed to our sustainability ambitions by utilizing affordable clean energy in our operations and optimizing our green logistics strategy; among other initiatives that are in alignment with our net zero pledge journey.”