Lafarge Africa Plc has recorded net sales of N405.503 billion for the year ended December 31, 2023.
The Company results released on the Nigerian Exchange Limited revealed that its full year 2023 free cash flow stood at N109.7 billion, while strong net cash of N142 billion.
Cost of sales stood at N198.787 billion in 2023 as against N177.023 billion in 2022, while gross profit rose to N206.716 billion higher than N196.222 billion recorded in 2022.
Meanwhile, profit before tax up by 15.7 per cent year-on-year in spite of N21 billion foreign exchange losses in 2023. Higher effective tax rate in 2023 coupled with pressures from forex losses led to a profit after tax decline of 4.7 per cent YoY.
The company’s total assets increased to N681.372 billion on December 31, 2023 from N600.711 billion in 2022. The Company’s board for the period under review proposed a final dividend of N30.605 billion, representing N1.90 per share.
CEO of Lafarge Africa, Lolu Alade-Akinyemi said, “the fundamentals of our business remain strong. In spite of extremely challenging macroeconomic headwinds, we grew the top line by 8.6 per cent and improved Operating Margin from 22.6 per cent to 25.3 per cent in the full year, 2023.
“In the face of very material FX devaluation losses and higher effective tax rate, profit after tax declined YoY by 4.7 per cent. Our performance was largely impacted by spiralling inflation and unprecedented naira devaluation, with the attendant pressure on energy and supply chain costs.”
Alade-Akinyemi added that “despite these challenges, we continue to maintain a strong free cash flow position and a strong balance sheet, positioning us for sustainable growth over the medium to long term.
We are committed to delivering sustainable value to all stakeholders in the coming years, as we have done historically.”
On the outlook, Lafarge Africa said “the Nigerian Infrastructure and Construction Sector is expected to continue growing despite inflationary pressure and currency depreciation affecting the economy.
“As a result, we maintain our positive outlook, expecting increased demand in 2024 as the economy picks up. We will continue to maximise volume opportunities across our markets and actively manage our costs. The Company remains committed to its sustainability ambitions and strategy of ‘Accelerating Green Growth’ through innovative building solutions and delivering stakeholder value.”
