Lafarge Africa Plc., a leading cement manufacturer in Nigeria, has defied economic challenges in the first half of 2023 as profit before tax rose by 18% in H1 2023, despite the expiration of the Pioneer Status Incentive (PSI), which impacted the Profit After Tax (PAT) growth.
The unaudited financial report obtained by Investors King showed that net sales jumped by 10.3% when compared to the 5.9% recorded in the previous year.
Operating profit for Q2 and H1 grew by 13.3% and 7.7%, respectively, highlighting the company’s focus on efficient cost management. The strong balance sheet of Lafarge Africa boasts a robust net cash position of N140.6 billion, while the H1 Free Cash Flow closed at N81.8 billion.
Lafarge Africa Plc. CEO, Lolu Alade-Akinyemi commented: “I would like to thank all employees and stakeholders of Lafarge Africa for another quarter of strong results, despite the challenging economic environment. We remain focused on delivering sustainable value to all stakeholders as the market recovers for the rest of the year.
We achieved strong top-line growth of 10.3% in Q2 and 5.9% in H1; Operating Profit growth of 13.3% in Q2 and 7.7% in H1, and Profit Before Tax improvement of 29% in Q2 and 18% in H1. Owing to the expiration of the Pioneer Status Incentive, Q2 Profit After Tax growth was a muted 3.2%.
This is backed up by a strong Free Cash Flow position and a healthy Balance Sheet. The recent launch of our Eco label cement brand re-affirms our commitment to delivering superior value to our customers. This new product has been certified to be eco-friendly with 30% lower carbon emission than the local industrial standard.
Our strategic and cost management initiatives have contributed to improved results despite the challenges.
We remain steadfast in our commitment to driving innovation and accelerating green growth in line with
our sustainability ambitions and targets.”