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Cost reduction strategy, others push Lafarge Africa’s profit to N51b

By Helen Oji
08 March 2022   |   2:39 am
Lafarge Africa Plc has posted a Profit After Tax (PAT) of N51 billion in its 2021 operations, against N30.8 billion achieved in the corresponding period in 2020.

Lafarge

Lafarge Africa Plc has posted a Profit After Tax (PAT) of N51 billion in its 2021 operations, against N30.8 billion achieved in the corresponding period in 2020.

Specifically, the company’s audited result for the full year ended December 31, 2021, showed 65.4 per cent rise over N30.8 billion achieved in the corresponding period in 2020 while Profit Before Tax (PBT) also rose from N37.5 billion to N62.3 billion.

The improved performance is attributable to the company’s ability to maximise volume opportunities across market segments as well as a cost reduction strategy adopted during the period to actively manage its costs.

Based on the performance, the company’s directors are recommending a dividend of N2 per share due to every shareholder of the firm for the 2021 financial year.

The company’s revenue stood at N293.1 billion, representing a 27.1 per cent rise when compared to N230.5 billion in 2020. Its net profit margin also rose to 17 percent in 2021 compared to 13 percent the previous year. Profit margin is the ratio of profit remaining from sales after all expenses have been paid.

Furthermore, the company’s borrowing cost plunged by 45.7 percent to N5.27 billion in 2021 compared to N9.71 billion in 2020 while finance income was N1.74 billion higher than N1.17 billion posted in 2020.

The cement firm’s administrative expenses also rose by 15.3 percent to N21.1 billion compared to N18.3 billion in 2020. Earnings per share also soared by 65 percent to N317 from N191 per share achieved in the previous year.

Speaking on the performance, the Chief Executive Officer of the company, Khaled El Dokani, said: “Our 2021 performance showed significant improvement, with net sales of +27.1 per cent, recurring EBIT of +42.6 per cent and net income of +65.4 per cent, compared to full-year 2020 results.”

“We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and agro-ecology footprint is in accordance with our net-zero pledge journey.”

On the 2022 outlook, he expressed hope that the company would record rising demand for its products, adding that it would continue to maximise volume opportunities across all markets and actively manage its costs. He also added that the company would consolidate its performance on sustainability.

In addition, he said the company would also leverage its innovative expertise to provide value-added products and services solutions in the building and construction industry in Nigeria.