Lafarge Africa Plc has released its unaudited financial statement for the first quarter (Q1) of 2024, posting a pre-tax profit of N8.7 billion.
This represents a 61% year-on-year decline from the N22.5 billion posted in Q1 2023.
The group recorded a revenue of N137.8 billion, representing a 50% YoY growth from the N91.8 billion posted in Q1 2024. However, a net FX loss of N21.8 billion pushed the group’s finance costs to N23.1 billion, signifyi a staggering 3338% YoY rise from N671.6 million finance costs incurred in Q1 2023.
Recommended reading: Lafarge Africa reports N51.1 billion profits despite incurring N21 billion in FX loss
Key Highlights Q1 2024 vs Q1 2023
- Revenue: N137.8 billion, +50% YoY
- Cost of sales: N72.1 billion, +59% YoY
- Selling and distribution costs: N27.3 billion, +46% YoY
- Operating profit: N30.2 billion, +36% YoY
- Finance costs: N23.1 billion, +3338% YoY
- Profit before tax: N8.7 billion, -61% YoY
- Profit after tax for the period: N5.2 billion, -65% YoY
- Earnings per share: N0.32, -66% YoY
- Total assets: N674 billion, -1% YTD
- Cash and cash equivalents at the end of the period: N75.2 billion, -28% YoY
What you should know
After a year marked by significant losses for Nigerian businesses stemming from the devaluation of the Naira, the first quarter of 2024 failed to offer respite.
The continued depreciation of the Naira further impacted the financial standings of numerous companies, including Lafarge.
During the quarter, the group’s loans and borrowings declined by 82% YoY to N4.7 billion from N26.2 billion in Q1 2023. As the group repaid N23.6 billion of its principal obligations within the quarter.