LAGOS—LAFARGE Africa Plc has announced N8.43 billion in operating profit for the first quarter ended March 31, 2019, up 35 percent from N6.26 billion in Q1, 2018.
The company also announced divestment of its entire 100 percent shareholding in Lafarge South Africa Holdings for cash consideration of N114.1 billion. Highlights of the company’s Q1’19 financial statement showed that its Earnings Before Interest, Tax, Depreciation, and Amortization (pre-IFRS 16) expanded by 6.7 percent to N15.11 billion from N14.16 billion in Q1’18
However, the net sales decreased by 2.6 percent to N78.51 billion from N80.64 billion in Q1’18. In his remarks, Chief Executive Officer of Lafarge Africa, Michel Puchercos said that implementation of the company’s new strategy 2022 is expected to further improve operational and financial performance. He stated:
“Our Strategy 2022, Building for Growth in Nigeria is delivering the expected results with a strong increase in operating EBITDA and profit. Our momentum is very positive and is expected to be sustained in 2019. “South Africa continued the turnaround plan with significant improvement in first quarter 2019 compared to the prior year. Our strategic decision to divest South Africa with a sale to another affiliate of the LafargeHolcim Group will strengthen our balance sheet.”
“The Rights Issue together with the divestment of our South African operations will deleverage Lafarge Africa by N246 billion, enabling us to fully repay USD shareholder loan and short-term naira overdraft.
