Lafarge Africa Plc, a leading player in the building materials industry, has reported strong financial performance for the third quarter of 2023 despite economic challenges in Nigeria.
The company’s Q3 net sales surged by 9.8%, a testament to its resilience in the face of inflation and the devaluation of the Naira.
However, the Q3 profit before tax (PBT) experienced a 17.4% decline, primarily due to foreign exchange losses and increased income tax expenses following the expiration of the Pioneer Status Incentive in 2022. The profit after tax (PAT) for the same period was down by 48.9%.
Over the course of the first nine months of 2023, Lafarge Africa maintained a positive trajectory with a 7.1% increase in net sales compared to the previous year.
Moreover, the operating profit saw a substantial rise of 22.6%, contributing to a 13.4% growth in the profit before tax. However, the profit after tax for the nine-month period declined by 12.5%.
Lafarge Africa’s free cash flow for the first nine months amounted to N72.5 billion, reflecting a robust financial position with a net cash balance of N117.8 billion.
The company remains committed to innovation, operational excellence, health and safety, and its decarbonization efforts, reinforcing its position as a leader in the building materials industry.
Lolu Alade-Akinyemi, CEO Lafarge Africa, commented: “The fundamentals of the business remain
strong. We achieved strong top-line growth of 9.8% and 7.1% in Q3 and 9M, respectively. 9M Operating
Profit grew 22.6%. Our Q3 performance was however impacted by macro-economic challenges mostly inflation and Naira devaluation.
“We continue to maintain a strong free cash flow position and a healthy balance sheet, positioning us for
sustainable growth. Our mid to long term outlook remains positive. We are committed to delivering
sustainable value to all stakeholders as we go into the last quarter of the year. I would like to thank all
employees and stakeholders of Lafarge Africa for their support over the years and in the last quarter’’
