Lafarge Africa Plc has unveiled its financial report for the year ending 31 December 2024, reporting a pre-tax profit of N152.2 billion.
This reflects a 93.27% year-over-year increase compared to the N78.7 billion reported in the prior year, amid a significant surge in revenue.
The group recorded a revenue increase of 71.83%, rising from N405.5 billion in the previous year to N696.7 billion in FY 2024.
Cement sales constituted 97% of the total revenue for the year, while Ready Mix and other products accounted for the remaining share.
Additionally, the group’s total assets increased to N990.5 billion, representing a 45.37% rise from the N681.3 billion reported for the full year of 2023.
Lafarge also declared a final dividend of 120 kobo per unit of 50 kobo ordinary share, subject to shareholders’ approval and appropriate withholding tax deduction.
This dividend will be payable to shareholders whose names are in the Register of Members as of the close of business on Friday, 28th March 2025.
Key highlights (2024 vs 2023 FY)
- Revenue: N696.7 billion, +71.83% YoY
- Cost of sales: N350 billion, +76.09% YoY
- Gross profit: N346.7 billion, +67.72% YoY
- Selling and distribution expenses: N120.4 billion, +54.28% YoY
- Administrative expenses: N40.1 billion, +45.67% YoY
- Other Income: N7.1 billion, +706.05% YoY
- Operating profit: N193 billion, +89.18% YoY
- Finance income: N2 billion, -55.70% YoY
- Finance costs: N42.5 billion, +63.76% YoY
- Pre-tax profit: N152.2 billion, +93.27% YoY
- Total assets: N990.5 billion, +45.37% YoY
- Retained earnings: N315.5 billion, +28.29% YoY
- Total Equity: N504.6 billion, +16.00% YoY
Company comment:
Commenting on the results, CEO of Lafarge Africa, Lolu Alade-Akinyemi, stated, “I am excited to report our record-breaking revenue of 697bN and PAT of 100bN for full year 2024, a testament to our strong market positioning, operational efficiency, cost management and dedication to value creation.
Despite a challenging business environment, we have remained resilient, leveraging innovation and green growth in line with our sustainability ambitions, while also delivering value to our stakeholders.”
Other highlights and commentary
- Cement sales comprised the majority of this revenue, accounting for 97.24% at N677.5 billion.
- Aggregate and concrete contributed 2.55% of the total, amounting to N17.7 billion, while other products made up the remaining N1.4 billion.
Conversely, the group experienced a sharp rise in the cost of sales, which increased by 76.09% year-over-year, reaching N350 billion.
- Key variable costs included fuel and power, totaling N158.7 billion, and raw materials and consumables, which amounted to N73.4 billion.
Despite the higher cost of sales, Lafarge’s gross profit rose by 67.72% year-over-year, reaching N346.7 billion, an increase from N206.7 billion in 2023.
- Selling and distribution expenses also rose significantly, increasing by 54.28% year-over-year to N120.4 billion, with distribution variable costs accounting for the majority at N100 billion.
- Administrative expenses similarly increased, climbing to N40.1 billion from N27.5 billion the previous year, primarily due to technical service fees and staff-related costs.
However, the company achieved remarkable growth in other income, which surged by 706.05% to N7.1 billion compared to N891.7 million in 2023.
- This increase included a reversal of impairment of property, plant, and equipment valued at N4.6 billion, along with a government grant of N1 billion, both contributing significantly to the overall total.
Profits from core operations grew by 89.18% year-over-year, reaching N193 billion, up from N102 billion.
- However, finance income declined from N4.6 billion in 2023 to N2 billion in FY 2024.
- Finance costs also rose, increasing by 63.76% to N42.5 billion compared to N25.9 billion reported the previous year.
Despite these challenges, the group’s full-year pre-tax profit increased by 93.27% year-over-year, climbing to N152.2 billion, up from N78.7 billion reported in 2023.
Asset position
Lafarge Africa increased its total assets to a whooping N990.5 billion, reflecting a 45.37% rise from the previous year’s figure of N681.3 billion.
Non-current assets surged to N576.5 billion, up from N442.3 billion, with property, plant, and equipment representing the largest portion.
Current assets also expanded significantly, growing to N414 billion from N239 billion in the prior year.
- Within this category, cash and cash equivalents totaled N237.8 billion and inventories amounted to N104.1 billion.
- Notably, among the total inventory, spare parts accounted for N52.5 billion, while finished goods stood at N25 billion, topping the list of inventory components.
