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Lafarge Africa Grows Profit by 3.5% in Q2, 2022

Lafarge Africa Plc, one of Africa’s largest cement manufacturers, managed to sustain profitability in the second quarter (Q2) of the year as over 70% jump in selling and distribution costs dragged on the company’s profit after tax.

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Lafarge Africa - Investors King

Lafarge Africa Plc, one of Africa’s largest cement manufacturers, managed to sustain profitability in the second quarter (Q2) of the year as an over 70% jump in selling and distribution costs dragged on the company’s profit after tax.

In the firm’s unaudited financial statement obtained by Investors King, revenue rose by 30.5% from N73.546 billion recorded in the second quarter of 2021 to N95.981 billion in the period under review.

Cost of sales (production) jumped 30.3% to N42.055 billion, up from N32.267 billion reported in the same period of 2021.

The increase weighs on gross profit as expected. Gross profit stood at N53.926 billion, against N41.279 billion achieved in the corresponding period of 2021.

Similarly, selling and distribution costs jumped a whopping 73.6% from N13.034 billion in Q2 2021 to N22.631 billion in Q2 2022. While other income dipped 38.36% to N89.631 million from N145.415 million in Q2 2022.

Therefore, the surge in cost of production, selling and distribution costs plunged operating profit to N26.514 billion. Still, a 12.8% increase when compared to the N23.515 billion realised in Q2 2021.

Finance income declined from N191.142 million to N136.945 million. Again, finance costs also jumped by over 50% to N1.239 billion in the period under review.

All these increases in expenses and declines in income dragged on profit before tax to N25.411 billion, a 3.5% increase from N23.976 billion in Q2 2021.

Commenting on the company’s performance, Khaled El Dokani, CEO of Lafarge Africa, said: “Our Q2 2022 performance shows significant improvement over Q2 2021, with net sales of +30.5%, recurring EBIT of +12.8% and net income of +3.5%.

“Our H1 2022 results are even more impressive, with 28.7% and 32.1% growth in net sales and net income,
respectively.

“This further confirms the consistent resilience and robustness of our business. We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and agroecology footprint are in accordance with our net zero pledge journey.”

On the outlook for the second half of the year, Lafarge Africa’s boss predicted a positive demand momentum expected in H2 2022.

He said, “We will continue to maximize volume opportunities across our markets and actively manage our costs and remain focused in our drive towards sustainability.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Nintendo to See 8% Increase in Revenue Despite Recent Decline

Nintendo saw a 5% decline in its Q2 results

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Nintendo

Video game sales have recently declined in revenue. It is suspected that this downturn comes as a result of people spending less time on gaming and more time going out. This fall in quarterly revenue also comes just after many lockdown restrictions have been lifted.

As the industry begins to falter this causes many to wonder, will gaming continue with its downward trajectory?

Mr.Gamble took a closer look at the most recent quarterly earnings for video game giants, Microsoft, Sony and Nintendo to determine the next quarter’s revenue predictions. Research took into account the Q2 and total 2021 earnings as well as the most recent quarterly earnings of 2022 and its decline in percentage.

Company

2021 total year earnings

2021 Q2

quarter earnings

Most recent 2022

quarterly earnings

% decline in 2022 Q2

Next quarter’s revenue predictions

(average)

Microsoft

£10.5 billion

£3.9 billion

£3.8 billion

7%

£3.85 billion

Sony

£14.9 billion

£8.8 billion

£3.7 billion

2%

£6.25 billion

Nintendo

£6.6 billion

£2.2 billion

£1.9 billion

5%

£2.05 billion

According to the recent financial statement published by Microsoft, its revenues saw a huge depreciation of 7%. This is largely due to the company’s sales of Xbox consoles declining. The company also saw a 2 billion decrease compared to its Q2 revenue of £3.9 billion last year.

Despite the loss in revenue, our study predicts that Microsoft could see a slight increase from the £3.8 billion it received this quarter to £3.85 billion by its next quarterly review.

Although Sony witnessed just a 2% decline in sales for its most recent quarter, its operating profits saw a more disastrous downturn, plunging to almost 37%. However, in spite of this gloomy outlook the company could still see a healthy turnover of £6.25 billion next quarter, almost a 2.6 billion increase from its current financial state.

Nintendo saw a 5% decline in its Q2 results. According to the Japanese company, this weak performance comes as a result of not being able to sell as many Switch consoles as it wanted due to a global semiconductor shortage. Though this may have been the case, it is still possible for Nintendo to see a decent 7.8% increase in revenue in its next quarter to £2.05 billion.

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Oil Spill: Shell Spills 5 Barrels of Oil in Bodo Community Rivers State

Shell has spilled five barrels of crude oil from its Trans Nigeria Pipeline (TNP) into the Bodo community in Gokana Rivers state

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One of the world’s leading energy companies, Shell has spilled five barrels of crude oil from its Trans Nigeria Pipeline (TNP) into the Bodo community in Gokana Rivers state.

The oil spillage was reported by Joint Investigation Visit (JIV) approved by the host community, Rivers state Ministry of Environment, the National Oil Spill Detection and Response Agency (NOSDRA) and Shell Petroleum Development Company (SPDC).

JIV is an organisation that investigates oil spills, pipeline leakages, causes and their impact on the community.

Shell’s Trans Nigeria Pipeline spilled about 98% of water and 2% of crude oil into the Bodo community due to the ongoing flushing of the TNP with 5 barrels of leftover crude oil.

The spokesperson for Shell Petroleum Development Company (SDPC), Michael Adande, however, explained that the effect of the oil spill on the community was minimal since the TNP has not transported crude oil since June 2022.

According to him, the JIV will release an up-to-date report on the situation. 

Micheal said, “The spill from the Bomu-Bonny section of the Shell petroleum development company JV’s TNP in Bodo community, in the local government area of Gokana, Rivers State was largely water (98 per cent) from the ongoing flushing of the TNP, with the leftover crude oil of about five barrels as established and signed by the JIV led by regulators and involving representatives of the Rivers State Ministry of Environment and the community.

“Owing to the high level of theft, Shell petroleum Development Council has not processed crude oil through the TNP since mid-June 2022.

“Cleanup of the affected area and repair work on the pipeline are underway.”

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Cement Manufacturers on NGX Pays N115.782 Billion Income Tax in H1 2022

Cement manufacturing companies paid N115.782 billion in income tax in the first half (H1) of 2022

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Lafarge, Bua Cement and Dangote Cement

Cement manufacturing companies listed on the Nigerian Exchange Limited (NGX) paid N115.782 billion in income tax in the first half (H1) of 2022.

Their unaudited financial statements obtained by Investors King revealed.

Dangote Cement Plc, Nigeria’s most capitalised company and the largest cement manufacturing company in sub-Saharan Africa, paid N92.786 billion in income tax in H1 2022, up from N89.624 billion paid in the same period of 2021.

The company reported a 10.2% decline in profit after tax to N172.104 billion, down from N185.692 billion reported in the corresponding period of 2021. Dangote Cement realised N808.037 billion in revenue during the period.

BUA Cement Plc, Nigeria’s second-largest cement manufacturer, remitted N13.527 billion in income and deferred taxes to the Federal Inland Revenue Service in the first 6 months of the year.

The cement manufacturing company generated N188.562 billion in revenue and reported a 41.40% increase in profit after tax to N61.364 billion.

Lafarge Africa, another key player in the cement industry, reported revenue of N186.587 billion in the first half of the year. The company then paid N9.468 billion in income tax before declaring a profit after tax of N37.410 billion for the period under review.

Therefore, the firms paid (Dangote Cement – N92.786 billion; BUA Cement – N13.527 billion and Lafarge Africa remitted N9.468 billion) a combined N115.782 billion in income tax to the federal government in H1 2022.

Together, the three cement manufacturing companies realised N1.183 trillion in combined revenue and reported a total profit after tax of N172.202 billion.

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