Lafarge Africa declares 17.3% drop in profit amid N19.9bn FX loss
Lafarge Africa Plc declared N29.35 billion profit after tax in half year ended June 30, 2024, about 17.3 per cent decline from N35.48 billion reported in half year ended June 2023.
The decline in profit can be attributable to N19.9 billion foreign exchange loss in the period under review.
The cement maker on the Nigerian Exchange Limited (NGX) posted N33.31 billion finance cost in H1 2024 as against N1.4 billion, another contributing factor that influenced decline in profit.
In the period under review, the company posted N295.6 billion revenue, about 50 per cent increase from N197.68biillion declared in the corresponding period.
The CEO of Lafarge Africa, Lolu Alade-Akinyemi in a statement said, “We sustained Net sales growth in Q2 2024 but saw H1 2024 PAT decline 17.3per cent vs PY due to foreign exchange losses resulting from Naira devaluation in H1 2024”.
“Our strategic and cost management initiatives have contributed to improved results despite severe macroeconomic challenges.
“We remain steadfast in our resolve to drive innovation and accelerate green growth in line with our sustainability ambitions while also delivering value to our stakeholders.
“I would like to thank our esteemed customers, employees and all other stakeholders of Lafarge Africa for their commitment despite the macroeconomic headwinds being experienced in the industry.”
On outlook, the company added that, “The Nigerian Infrastructure and Construction Sector is expected to continue to grow despite inflationary pressure on purchasing power.
“As a result, we maintain our positive outlook, with market recovery expected in the second half of the year. We will continue to maximize volume opportunities across our markets and actively manage our costs.
“The company remains committed to its sustainability ambitions and strategy of ‘Accelerating Green Growth’ through innovative building solutions and delivery of stakeholder value.”
