Lafarge Cement grows profit 92.18%
By Jeph Ajobaju, Chief Copy Editor
Lafarge WAPCO Cement made N17.55 billion profit in the first quarter ended March 2022 (Q1 2022), 92.18 per cent rise year-on-year (YoY) on 2020 figures.
Lafarge is the producer of Elephant Cement, one of the oldest brands in Nigeria, but the company has been pushed down to third position in market share led by Dangote Cement, followed by BUA Cement.
Revenue was driven by growth in product categories summed up at 26.77 per cent YoY, according to the unaudited financial results of Lafarge.
Sales rose 25.96 per cent and raked in N87.99 billion. Sales of aggregates and concrete grew 62.29 per cent and fetched N2.52 billion.
Sale of mortar increased 60.41 per cent and made N98.94 million.
Income from short-term fixed deposit investment brought N54.69 million profit.
Income from government grants, property disposal and sale scraps rose 11.96 per cent to N165.66 million.
Administrative expenses grew in double digits with selling and distribution expenses increasing 16.86 per cent as advertising and campaign spending shot up.
Advertising expenses grew 26.92 per cent. Campaign and Innovation expenses cost N3.33 million against N21,000 in Q1 2020.
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Other metrics
- Total assets – N535.64 billion
- Net assets – N396.12 billion (up 4.64 per cent)
- Long-term loans and borrowings – N2.29 billion
- Earnings per share – N1.09 (up 91 per cent on N0.57 in Q1 2021)
- Final dividend paid to shareholders – N1.00 (31 December 2021)
- Per share price – N25.55 (YoY)
- Returns – 6.47 per cent (year-to-date)
Confirmation of growth trajectory
“Our Q1 2022 performance shows significant improvement over Q1 2021, with net sales of +26.8%, recurring EBIT of +50.4% and net income of +92.2%,” Lafarge Africa said, according to Nairametrics.
“Coming after our very strong FY 2021 results, our Q1 2022 performance confirms the continued growth trajectory of our business.
“We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and agro-ecology footprint are in accordance with our net zero pledge journey.”