Lafarge Africa Plc has posted a growth of 18 per cent profit before tax for the first half of 2023 in spite of economic challenges.
The company, in its half year results for the period ended June 30, 2023, showed that, profit before tax moved to N55.315 billion as against N46.879 billion in 2022.
Revenue rose by 6.04 per cent from N186.587 billion in 2022 to N197.681 billion in the period under review. Cost of sales stood at N94.286 billion from N90.516 billion in 2022, while gross profit amounted to N103.395 billion as against N95.071 billion achieved in the corresponding period of 2022.
The company recorded a healthy balance sheet with a strong net cash of N140.6 billion. The CEO of Lafarge Africa, Lolu Alade-Akinyemi said: “we achieved strong top-line growth of 10.3 per cent in Q2 and 5.9 per cent in H1; operating profit growth of 13.3 per cent in Q2 and 7.7 per cent in H1, and profit before tax improvement of 29 per cent in Q2 and 18 per cent in H1.
“Owing to the expiration of the Pioneer Status Incentive, Q2 profit after tax growth was a muted 3.2 per cent. This is backed up by a strong free cash flow position and healthy Balance Sheet.”
He stated that, “the recent launch of our Eco label cement brand re-affirms our commitment to delivering superior value to our customers. This new product has been certified to be eco-friendly with 30 per cent lower carbon emission than the local industrial standard.
“Our strategic and cost management initiatives have contributed to improved results despite the challenges. We remain steadfast in our commitment to driving innovation and accelerating green growth in line with our sustainability ambitions and targets.”
On outlook, Lafarge Africa said: “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 for 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.”
