Lafarge Africa’s full year profit falls by 38% to N16.8bn
Lafarge Africa Plc, one of the leading cement and building solutions providers in Nigeria, yesterday reported a profit after tax (PAT) of N16.898 billion for the year ended December 31, 2016, showing a decline of 38% compared with N27.163 billion in 2015.
According to the audited results, Lafarge Africa Plc recorded revenue of N219.714 billion, compared with 267.234 billion in 2015. Loss before tax stood at N22.818 billion, compared with a profit before tax of N29.286 billion. However, a N39.717 billion tax credit, which came mainly from deferred tax assets generated from Unicem operations, lifted the company’s PAT to N16.898 billion.
The board has recommended a dividend of 105 kobo, which is 65% lower than 300 kobo the company declared in 2015.Commenting on the performance, the Chief Executive Officer, Lafarge Africa, Michel Puchercos, said: “Our turnaround plan delivered solid results in fourth quarter (Q4) 2016 in spite of the challenging environment in Nigeria and South Africa.
Technical challenges have been resolved with all our plants operating at high reliability. Our energy optimisation plan has proved successful with increased use of alternative fuel (AF) to offset gas shortages. Ewekoro 1 plant migrated from 100% reliance on gas and LPFO to about 40% use of AF at the plant. Logistics and commercial turnaround plans are in place to restore market share.”
According to Puchercos, Mfamosing line 2 was delivered ahead of time and above specification, and is now fully operational.