Lafarge Africa Plc has recorded net sales of N234 billion for the nine-month period and N72 billion for the third quarter of 2018.
The financial statement for the period represented is a growth of five per cent over 2017 both versus the quarter and the nine months period.
According to the company’s financial result submitted to the Nigerian Stock Exchange (NSE) on Wednesday, there are indications that the positive performance was mainly driven by strong volume growth in Nigeria and favourable pricing trends in South Africa.
EBITDA for the third quarter increased significantly as a result of improved performance in South Africa but overall, it dropped for the nine months period due to South Africa’s performance in Q1 and Q2.
The company’s Chief Executive Officer, Mr. Michel Puchercos, while commenting on the company financials said that it would continue to deliver strong margins in its Nigerian business as a result of its successful commercial strategies with improved product visibility and the fast-tracking of the new route to market.
According to him, the company’s energy efficiency plan translated in increased use of Alternative Fuel and Coal. Our South African operations delivered first positive recurring EBITDA and are focused on executing its turnaround plan.
He explained further that the company had commissioned successfully a new grinding station in Ghana with a capacity of 600KT.
On the company’s future outlook, Puchercos forecasts that the company’s outlook for the cement market in Nigeria remains favourable in Q4, adding that iIn South Africa, it expects the execution of its turnaround plan will continue to yield positive results. All product lines are expected to contribute to the performance.
Last month, the company’s Board approved the refinancing of the shareholder loan to $293m with longer maturity and a Right Issue of up to N90bn.
Speaking on the restructuring, the Chief Financial Officer, Bruno Bayet, said that the initiative was aimed at reducing the company’s leverage position as well as strengthening its profitability.