Lafarge Africa Plc has announced its financial results for the fiscal year 2022, showing year-on-year growth in net sales, recurring EBIT, and net income.
The cement company reported net sales of N373.245 billion, a 27.3% increase compared to the previous year, while recurring EBIT grew by 29.3% to N84.194 billion.
Despite the positive performance, the company’s net income was constrained by the foreign exchange translation impact, leading to a 5.2% growth rate.
What Lafarge is saying
In a statement released by Khaled El Dokani, CEO of Lafarge Africa, he said, “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.”
- The company also reported a robust free cash flow of N71.9 billion and a strengthened balance sheet with a net cash position of N81.8 billion. Lafarge Africa is committed to health and safety and accelerating its sustainability initiatives.
- Looking ahead to 2023, the company expects good demand momentum, albeit moderated due to the impact of the general elections.
- Lafarge Africa plans to maximize volume opportunities across its markets, actively manage costs, and consolidate its efforts on sustainability.
Dividends declared
The Board of Directors is proposing a gross dividend of N2 (2021: N2) on every ordinary share in issue amounting to ₦32,215,591,442.00 (2021: ₦32,215,591,442.00 ).
- Lafarge Africa also mentioned that it plans to pay dividends from its pioneer profits.
- Paying dividends from pioneer profits means that the company uses funds generated from its pioneer operations to pay dividends to its shareholders. Pioneer
- Pioneer profits are profits earned by a company from its pioneer activities or new ventures that are eligible for pioneer status incentives, such as tax exemptions, in the early stages of the business or an investment.
- By paying dividends from pioneer profits, a company can share the benefits of its early successes with its shareholders while also retaining earnings to support the growth and development of the company.
