Lafarge Africa Plc released its FY2021 results with the company’s net earnings rising by 65.4 percent to hit N51 billion. A summary report of how the company performed is found in the details below.
- The firm is part of the Holcim Group, a global pioneer in innovative and sustainable building solutions.
- The company was founded on February 24, 1959 and listed on the Nigerian Exchange Group (NGX) on February 17, 1979.
- The company operated previously under the name of Lafarge Wapco Plc. The merger of Lafarge and Holcim, resulted to a consolidated of Lafarge's assets in Nigeria and South Africa resulted which metamorphose into a new name called "Lafarge Africa Plc".
- Lafarge offers a wide range of building and construction solutions in Nigeria, from small projects like individual homes to large construction and infrastructure projects.
- Lafarge Africa Plc now has 10.5MTPA installed cement production capacity at Ewekoro and Sagamu in the south-west, Mfamosing in the south, and Ashaka in the north-east of Nigeria.
- The company’s market cap is N386.89 billion and it gained 3.33 percent at the close of business yesterday (Mar-2,2022).
- Lafarge operates in the highly capitalized and competitive cement industry where it constantly competes for increased market share between BUA Cement, Ashaka Cement, and Dangote Cement.
- It is believed in some quarters that Lafarge cement the “Elephant” brand controls between 10-20 percent of the market. I believe that that the company’s dominant market is situated in the south western part of Nigeria.
- Net sales rose 27.1 percent to 293.1 billion from 230.6 billion in December 2020.
- Regular EBIT (earnings before interest and taxes) rose 42.6% to 65.107 billion, compared to 45.67 billion in December 2020.
- Net income increased 65.4 percent to N 51,004 billion from December 2020's N 30,842 billion.
- Free cash flow after N43.4bn lease
- Stronger balance sheet with N 26.8bn net cash
- Strictly focus on H&S and increasing sustainable efforts
Performance Overview FY 2021 Financial Highlights
Khaled El Dokani, CEO of Lafarge Africa, said: “Our 2021 performance improved significantly from FY 2020, with net sales up 27.1%, recurring EBIT up 42.6%, and net income up 65.4%. Our use of affordable clean energy and agro-ecology footprint are in line with our net zero pledge journey”.
The CEO beleived that demand for the company's product will continue to experience an upward momentum. As a result, the company will endeavour to maximize volume opportunities across markets and actively manage cost and consolidate on existing efforts.