[Nigeria] Larfage Africa posts $448 million half year net sales
Lafarge Africa Plc has recorded net sales of N162 billion, about $448 million, for the first half 2018 and N82 billion, approximately $226 million, for the second quarter of 2018.
This is an increase of 5% and 11% respectively compared to the corresponding period in 2017, mainly driven by Nigeria’s strong operational performance.
The CEO of Lafarge Africa Plc Mr. Michel Puchercos said: “We continued to deliver strong margins in our Nigerian business as a result of our commercial and energy strategies. At the same time, our results were still affected by the performance in South Africa.”
Lafarge Africa Plc’s commercial, logistic and industrial operations in Q2 2018 continued to improve strongly despite inflation and Foreign Exchange impacts. “We continued to deliver on our energy improvement plan, with notable increased use of Alternative Fuel and Coal. Our logistics and commercial initiatives such as improved product visibility and fast tracking of the new route to market also contributed to the strong performance in the second quarter” said Mr. Puchercos.
The Lafarge Africa CEO disclosed that the South Africa operations are focused on executing its turnaround plan with focus on improvement of margins.
Full year outlook for the cement market in Nigeria remains favourable with positive signs of recovery since March. Lafarge Africa Plc’s business turnaround actions will continue to deliver in 2018 through energy optimization as well as commercial and logistic improvement.
For South Africa the economy is expected to grow in 2018. The turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilsation. The overall goal is to create shareholder value by returning the SA business to profitability through improved margins.
The Board has approved the reduction of existing shareholder loan to $293m and a Right Issue of up to N90bn, subject to all corporate and regulatory approvals. The restructuring is aimed at reducing the Company’s leverage position as well as strengthening its profitability.