Lafarge Africa has reported first quarter results from operations showing a 156 percent rise in net income largely as a result of finance costs which fell by 70 percent for the period.
Gross profit from operations were flat at N17.6 billion, however profit after tax rose to N8 billion from N3.1 billion in 2019.
Khaled El Dokani, CCEO of Lafarge Africa said: “I am proud of the plan Lafarge Africa has implemented to protect the health of our people while supporting our partners and communities. The first quarter results confirm that our turnaround initiatives are effective and our strong balance sheet is mitigating the risks borne by the pandemic that has started hitting our country in March.”
The company however expects that the public safety measures issued by the federal and state authorities in Nigeria and around the world will adversely affect the company’s results in Q2, 2020.
Despite short-term disruptions, Lafarge Africa Plc is however confident in the underlying resilience of its businesses and operating model as the company has developed robust cost and cash optimization initiatives.
“The Lafarge Africa’s strong balance sheet and reduced cost base will also help minimize the negative effects of the COVID-19 pandemic,” the firm said.
Lafarge Africa has one of the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State) with Ready-Mix operations in Lagos, Abuja and Port Harcourt. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.