Lafarge Nigeria, a subsidiary of French cement making giant Lafarge, has posted a tremendous turnaround in profitability, moving from a loss making position of N30.2 billion in 2016 to a profit after tax of N19.73 billion for the half year ended June 30, 2017.
Figures submitted to the Nigerian Stock Exchange (NSE) also showed a 44 percent increase in revenue to N154.8 billion, from N107.3 billion in 2016.
The cement maker explained that the tremendous growth in profit after tax was due to a surge in sales during the time under review.
It also noted that a tax credit of N5.9 billion, complemented by a solid market performance earned it such remarkable figures.
“The key drivers of the PBT growth were sales growth of 34 percent and an 18.64 percent expansion in gross margin to 32 per cent. These positives completely offset a 78 per cent rise in opex and a 138 per cent spike in net interest expense. Thanks to a tax credit of N5.9 billion and a positive result of N5.8 billion on the other comprehensive income (OCI) line, PAT accelerated to N20.3 billion,” the cement maker explained.
With a production capacity of more than 8.5 million mtpa, Lafarge is the second largest cement manufacturer in Nigeria, only behind Dangote Cement, owned by Africa’s richest man, Aliko Dangote.