Lafarge Africa reported an increase in pre-tax profit for Q2 of 2024 at 37.9 billion, representing a 15.66% year-over-year rise.
The released statements also reported an ascent in year-over-year revenue from 105.9 billion the previous year to 157.8 billion for the period ending June 30, 2024.
Increased profit after tax was also depicted in the statement, with profit climbing to 24.2 billion from 20.4 billion recorded the previous year.
Key highlights:
- Revenue: 157.8 billion, 49.06% YoY
- Cost of sales: 75.8 billion, 54.90% YoY
- Gross Profit: 81.9 billion, 44.06% YoY
- Net finance cost: 13.3 billion, 852.09% YoY
- Pre-tax profit: 37.9 billion, 15.66% YoY
- Selling & distribution expenses: -26.3 billion, 22.14% YoY
- Administrative expenses: -8.4 billion, 254.53% YoY
- Operating profit: 47.7 billion, 58.77% YoY
- Profit after tax: 37.9 billion, 13.54% YoY
- Earnings per share: N1.5, 18.11% YoY
- Total Assets: 264.2 billion, 10.5% YoY
Commentary:
The 15.66% rise in year-over-year pre-tax profit reported in the financial statement of Lafarge Africa represents solid profitability in the group, strengthened by a surge in revenue of 49.06%.
- Increased revenue in the group depicted in the Q2 YoY report resulted from strong sales of the newly introduced water-resistant cement product, “Watershield.”
- The sale of cement, which accounts for a substantial part of the group’s revenue, rose by 33.39% to 153.6 billion, in contrast to 105.8 billion from the previous year.
Due to the increased number of sales recorded in Q2 of 2024 owing to the introduction of “Watershield” in the market, the cost of sales climbed by 54.90% YoY to 75.8 billion.
However, the increase in operating profits in Q2 of 2024 by 58.77% YoY represents enough operational profit needed to cover costs emanating from sales.
Heightened earnings per share value at N1.5 for Q2 of 2024 indicates an 18.11% rise in shareholder profits from common stocks, along with an increase in investment sentiments.
In terms of total current assets reported for Q2 for the period ending June 30, 2024, a 7.89% year-over-year increase can be depicted compared to the previous year.
Lafarge is currently trading at N36.80 per share, after retracing to a low of N33.22 per share in the trading week that commenced on the 26th of February.
The stock has been bullish, eyeing the technical zone of N44.96 per share.