Lafarge Africa Posts N8.7 Billion Pre-Tax Profit In Q1 2024

In its unaudited financial statement for the first quarter (Q1) of 2024, Lafarge Africa Plc reported a pre-tax profit of N8.7 billion.

This is a 61% annual decrease from the N22.5 billion reported in the first quarter of 2023.

From N91.8 billion in Q1 2024 to N137.8 billion in Q2 2024, the group’s revenue represents a 50% YoY gain. The group’s financing expenses, however, increased to N23.1 billion due to a net foreign exchange loss of N21.8 billion, which represents a startling 3338% YoY increase from the N671.6 million finance costs recorded in Q1 2023.

Read Also: Equity: Dangote, BUA And Lafarge Africa Gain N7.921 Trillion In Market Value In Q1’2024

Key Highlights Q1 2024 vs Q1 2023

Revenue: N137.8 billion, +50% YoY

Cost of sales: N72.1 billion, +59% YoY

Selling and distribution costs: N27.3 billion, +46% YoY

Operating profit: N30.2 billion, +36% YoY

Finance costs: N23.1 billion, +3338% YoY

Profit before tax: N8.7 billion, -61% YoY

Profit after tax for the period: N5.2 billion, -65% YoY

Earnings per share: N0.32, -66% YoY

Total assets: N674 billion, -1% YTD

Read Also: Grant Earnshaw Appointed as a Non-Executive Director of Lafarge

Cash and cash equivalents at the end of the period: N75.2 billion, -28% YoY

After a year marked by significant losses for Nigerian businesses stemming from the devaluation of the Naira, the first quarter of 2024 failed to offer respite.

The continued depreciation of the Naira further impacted the financial standings of numerous companies, including Lafarge.

During the quarter, the group’s loans and borrowings declined by 82% YoY to N4.7 billion from N26.2 billion in Q1 2023. As the group repaid N23.6 billion of its principal obligations within the quarter.