Lafarge Africa Plc has published its audited financial report for the nine-month period ending September 30, 2024, revealing significant growth with a pre-tax profit of N91.5 billion.
This represents an increase from the N61.1 billion recorded during the same period in 2023, reflecting a year-over-year rise of 49.69%.
The company’s post-tax profit rose by 45.78% to N57.2 billion, while revenue surged by 66.02% to N479.9 billion, with cement sales contributing 97% of total revenue.
Lafarge also reported a notable rise in ‘other income,’ which jumped to N2.2 billion from N540.7 million the previous year.
Key highlights
- Revenue: N479.9 billion, +66.02% YoY
- Cost of sales: N246.5 billion, +74.86% YoY
- Gross profit: N233.3 billion, +57.60% YoY
- Administrative expenses: N29 billion, +57.86% YoY
- Other Income: N2.2 billion, +319.84% YoY
- Operating income: N126.5 billion, +82.55% YoY
- Pre-tax profit: N91.5 billion, +49.69% YoY
- Post-tax profit: N57.2 billion, +45.78% YoY
- Earnings Per Share: N356, +45.90% YoY
- Total Assets: N808 billion, +18.59% YoY
Commentary
A review of Lafarge’s third-quarter 2024 results indicates an improvement in performance, despite an increase in both the cost of sales and administrative expenses.
The company reported a 66.02% year-over-year revenue increase for the first nine months, reaching N479.9 billion, compared to N289 billion in the same period last year.
- Cement sales were the primary driver, accounting for 97% of total revenue, while aggregates and concrete sales contributed 2.67%.
However, the cost of sales rose significantly by 74.86% year-over-year, totaling N246.5 billion, up from N141 billion.
- Production variable costs comprised 66.34% of this total
Despite the cost of sales surge, Lafarge recorded a gross profit increase of 57.60% year-over-year, amounting to N233.3 billion, up from N148 billion in 2023.
Administrative expenses also saw a notable increase, rising by 57.86% year-over-year to N29 billion, compared to N18.4 billion the previous year.
- Significant portions of these expenses were attributed to office and general costs (32%), salaries and employee-related expenses (25%), and technical service fees (27%).
Additionally, the company’s ‘other income’ increased to N2.2 billion, up from N540.7 million in the prior year.
- Government Grants constituted 44% of other income.
- Gains from Disposal of Property, Plant, and Equipment accounted for 41% of other income.
Lafarge also reported an 82.55% year-over-year increase in operating profit and a 49.69% rise in pre-tax profit, reaching N91.5 billion.
Post-tax profit increased by 45.78% year-over-year to N57.2 billion, while earnings per share rose by 45.90%, reaching N3.56 compared to N2.44 in the prior year.
Asset performance
As of September 30, 2024, the group’s total assets surged to N808 billion, marking a notable increase from N681 billion at the end of 2023.
This growth was primarily fueled by a significant rise in non-current assets, largely attributable to a robust investment in property, plant, and equipment, which grew from N360 billion to N390 billion.
- Specifically, ‘’production plant assets’ represented N391.7 billion, while ‘’building assets accounted’ for N102.9 billion.
Current assets also saw a substantial uptick, especially in inventories, which surged from N54 billion to N100 billion.
- Notably, spare parts comprised 47.9% of total inventories, with semi-finished and finished goods contributing 29.18%.
