Lafarge Africa doubles profit to N100bn
Lafarge Africa Plc has reported a profit after tax of N100.1bn for the financial year ended December 31, 2024, representing a 96 per cent increase from the N51.1bn recorded in 2023.
The cement manufacturing giant also saw a rise in revenue, which surged by 72 per cent to N696.8bn in 2024 from N405.5bn in the previous year.
According to its audited financial statements filed on the Nigeria Exchange on Thursday, Lafarge Africa’s performance was driven by higher sales volume and improved pricing strategies, despite prevailing macroeconomic challenges.
The company’s gross profit rose by 68 per cent to N346.7bn from N206.7bn in 2023, reflecting its ability to manage production costs and boost efficiency.
However, selling and distribution costs increased by 54 per cent to N120.4bn, while administrative expenses also rose to N40.1bn from N27.6bn in the previous year.
Its operating profit stood at N193bn, representing an 89 per cent increase from the N102bn recorded in 2023.
Meanwhile, finance costs jumped by 64 per cent to N42.5bn, driven by higher interest rates and borrowing costs.
Despite the increase in expenses, the company recorded a profit before tax of N152.3bn, marking a 93 per cent increase from the N78.8bn posted in the prior year.
Income tax expense also rose by 89 per cent to N52.1bn from N27.6bn in 2023, but this did not dampen Lafarge Africa’s bottom-line growth, as it closed the year with a profit after tax of N100.1bn.
In the period under review, Lafarge Africa’s total assets grew to N990.5bn in 2024, a 45 per cent increase from N681.4bn in 2023. Non-current assets, including property, plant, and equipment, rose to N409.8bn from N360.2bn, reflecting investments in infrastructure and production capacity.
The company’s cash and cash equivalents also improved significantly to N237.9bn, up from N168.4bn in 2023, indicating strong liquidity and a solid financial standing.
On the liabilities side, total liabilities rose to N485.9bn in 2024 from N246.3bn in 2023, driven by higher trade payables and contract liabilities due to increased business activity.
The company’s earnings per share rose to 622 kobo from 317 kobo in 2023, reflecting increased returns to shareholders.
The PUNCH reported that Lafarge Africa Plc has reported a profit after tax of N57.3bn for the nine months ended September 30, 2024, marking a 46 per cent increase from the N39.3bn recorded in the corresponding period of 2023.
