Lafarge Africa Offers 100kobo Per Share Dividend To Shareholders

Lafarge Africa has offered its shareholders a dividend of 100 kobos per share for the 2019 financial year following the return of the cement company to profitability.

The company disclosed the details of the audited results on Tuesday, showing revenue of N213 billion for the year ended December 31, 2019, as against N218 billion in 2018 and Operating expenses dropped from N29.89 billion to N23.42 billion. 

The company recorded a profit after tax of N15.5 billion against a loss of N8.1 billion in 2018. 

Concluding by the positive record for the year, the board has recommended a dividend of 100 kobos per share.

Commenting on the results, the Managing Director/Chief Executive Officer of Lafarge Africa Plc, Mr. Khaled El Dokani, said: “Our turnaround and cost-reduction strategy in 2019 and the divestment of the South African business, have delivered strong results. The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future.”

“The construction sector and construction sites are generally more resilient than other sectors and Lafarge Africa has a strengthened balance sheet and is well equipped to weather the storm. However, we are closely monitoring the evolving situation and the impact of the COVID-19 pandemic on the Nigerian market,” he noted.

Meanwhile, an analyst at Cordros Securities Limited, said the result showed that the company’s 2019FY earnings per share (EPS) settled N7.15% up from a loss position in the previous year.

According to Cordos Securities, the positive out-turn was driven by the one-off gain from the sale of Lafarge South Africa Holdco (LSAH) in the third quarter (Q3) of 2019.

“We understand that the comparative year now excludes the profit and loss statement of LSAH. Adjusting for the gains from the discontinued operation, Lafarge’s core EPS grew marginally by 2.8%, supported by the blend of lower finance charges, higher other operating income, and lower operating expenses. On the 2019FY reported EPS, the board has proposed a final dividend of NGN1.00/share, which implies a dividend yield of 10.2% on today’s closing price (N9.80 per share),” the analysts added.