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Lafarge Africa Plc grosses N82bn net Sales in Second Quarter Results
Lafarge Africa Plc has recorded net sales of N162 billion for the first half 2018 and N82 billion 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.
In his remarks, the chief executive of the company, Mr. Michel Puchercos averred “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 timing of inventory movements and 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” Puchercos noted.
According to him, the South Africa operations are focused on executing its turnaround plan with focus on improvement of margins.
Looking at the company’s outlook, Puchercos said 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.
On debt restructuring, Puchercos revealed that the Board of Lafarge Africa Plc has approved the extension of existing shareholder loan 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.