By Baron Ike
Lafarge Africa Plc dashed the hope of investors who have been waiting for its third-quarter (Q3) financials after the cement maker berthed the Nigerian Stock Exchange (NSE) with a group pre-tax loss of N14.36 billion for the period ended September 30, 2018.
This loss represents a decline of 1,413.2 per cent when compared to N1.094 billion pre-tax profit it recorded in Q3’2017.
Ahead of this results release, the board of directors held emergency meeting on October 16, 2018 where they considered the third-quarter financial results of the Company for the period ended September 30, 2018 among other matters.
Lafarge Africa is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete, Aggregates, Fly-Ash, etc.
Group Managing Director / Chief Executive Officer; Lafarge Africa Plc, Michel Puchercos (right); Chairman, Mobolaji Balogun and company secretary, Ms. Uzoma Uja.
The group revenue in third-quarter of 2018 increased to N234.3 billion from N223.6 billion in Q3’17, representing 4.8 per cent increase.
Loss After Tax (LAT) stood at N10.3 billion against N938 million profit after tax in Q3’17, representing a decline of 1206 per cent.
Lafarge’s Net Assets declined by 15.6 per cent to N132.561 billion in nine months to September 30 as against N156.987 billion as at December 31, 2017. Shareholders Fund depleted by 25.25 per cent in Q3’18 to N132.56 billion against N177.34 billion in Q3’17.
Administrative expenses as at N32.62 billion in third-quarter of 2018 against N29.16 billion as at Q3’17 represents an increase of 11.86 per cent. Lafarge Africa Plc Loss Per Share (LPS) stood at N1.20 against Earnings Per Share (EPS) of 10 kobo in Q3’17, representing a decline of 1,205.99 per cent.
At N21, the share price is down 53.2 percent this year and under-performs the NSE ASI which is down by 14.44 percent this year.
Lafarge Africa PLC (Lafarge Africa) was incorporated in Nigeria on 26 February, 1959 and commenced business on 10 January 1961. The Company formerly known as Lafarge Cement WAPCO Nigeria Plc changed its name after a special resolution was passed by the shareholders at an Annual General Meeting held on Wednesday 9 July 2014.
The change of name became effective with the acquisition of shares in Lafarge South Africa Holdings (Proprietary) Limited (LSAH), United Cement Company of Nigeria Limited (UNICEM), AshakaCem PLC (AshakaCem) and Atlas Cement Company Limited (Atlas).
On July 15, 2016, Lafarge S.A. France and Holcim Limited, Switzerland two large global players merged to form LafargeHolcim Group based in Zurich, Switzerland. Consequently Lafarge Africa is now a subsidiary company of Lafarge Holcim. The term ‘Group’ as used in the third-quarter (Q3) report refers to Lafarge Africa, its subsidiaries and investment in joint operations.