Lafarge Africa revenue grows 8.6% to N405.5bn in 2023

By Nkiruka Nnorom

Lafarge Africa Plc has posted N405.5 billion in revenue for the year ended December 31, 2023, representing an 8.6 percent increase compared to N373.2 billion recorded in the corresponding period in 2022.

The company’s 2023 financial statement released on the Nigerian Exchange Limited (NGX) , showed that its operating profit rose by 21.7 percent to N102.5 billion from N84.2 billion in 2022, indicating a 21.7 percent increase.

However, its profit after tax (PAT) shrinked by 4.7 percent to N51.14 billion from N53.65 billion on the back of higher effective tax rate after the expiration of its pioneer status incentive in 2022 coupled with pressures from foreign exchange (FX) losses.

Commenting, Lolu Alade-Akinyemi, CEO of Lafarge Africa, said: “The fundamentals of our business remain strong. In spite of extremely challenging macroeconomic head winds, we grew the top line by 8.6% and improved operating margin from 22.6% to 25.3% in 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%. Our performance was largely impacted by spiralling inflation and unprecedented Naira devaluation, with the attendant pressure on energy and supply chain costs.

“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.”

He noted that 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 maximize volume opportunities across our markets and actively manage our costs,” he added.