Lafarge Africa Plc has reported revenue of N52 billion and an EBITDA of N5.1 billion in the first quarter of 2016.
The impressive result was achieved despite the challenging overall economic conditions accentuated by temporary production challenges that were resolved, and the pricing environment experienced within the period.
A statement from the company said prices stabilised in March 2016 with impact from Q2 2016.
Lafarge Africa Plc, a leading Sub-Saharan Africa building solutions Company and member of the LafargeHolcim Group, is on the verge of concluding the combination of its businesses and integration process which started in 2014.
The Board of Directors of Lafarge Africa Plc granted approval to issue a voluntary tender offer on the balance of AshakaCem Plc shares, which will increase the company’s shareholding in AshakaCem from the current position of 82.46%. Regulatory proceedings and the evaluation of the Board of AshakaCem Plc are in progress and the shares acquisition process could be concluded by the end of Quarter 2, 2016.
Furthermore, Lafarge Africa Plc is set to issue up to N60 billion bond through a book building process.
The transaction is a 2 tier bond with 2/3 year and 5 year tenors and the proceeds will be used to refinance the third party debts of its subsidiary company, UniCem.
The Bond issue is awaiting approval by the Securities & Exchange Commission and is expected that book building will commence in May 2016.
Lafarge Africa has significant initiatives to come in future quarters of 2016 as it wraps up on the Consolidation & Integration process of the Company.
The synergy savings expected from the consolidation and integration will start impacting results during the year.
Plant operations were stabilizing, with gas utilization in the high 80s in South West and Eastern (Mfamosing) Nigeria operations, while coal utilization in AshakaCem was also in the high 80+s The South African cement operations returned to growth with cement sales volume up by 11% vs. Q1 2015.
The Lichtenburg plant is much more stable, eliminating consumption of imported clinker completely. Overall, our plants are expected to deliver stronger operational results in future quarters of 2016.
Commenting on the results, the CEO, Lafarge Africa Plc, Mr. Michel Puchercos said “in spite of the macroeconomic challenges, our company will continue to deliver good performance with significant upsides to come as we conclude on the integration journey to form Lafarge Africa Plc. The new organisation of the Company is much stronger and better positioned to deliver operational excellence and improve value to our shareholders.
“We expect 2016 to be a vibrant year, driven mostly by the Individual Home Segment and we are confident about the future. Our objective is to deliver innovative and quality building solutions to meet the specific needs of our customers, while also achieving good value creation for our shareholders.
“The federal government has shown strong indications to support Infrastructure growth in 2016 and we will be able to leverage on our unique foot-print with all Lafarge Africa entities to benefit from these initiatives.
“The new line at Eastern Nigeria (Mfamosing plant) will be commissioned during the second half of the year, while the ReadyMix business continues to secure high quality contracts to deliver strong performance in the year.
“The South African cement market will remain challenging, but we are confident in our ability to develop the business through a renewed sales force team and route to market initiatives. Furthermore, we have renewed strategies for our Aggregates & ReadyMix business which would support overall future business growth in the year.”
Lafarge Africa Plc, a leading Sub-Saharan Africa building materials company is a subsidiary of LafargeHolcim, a world leader in building materials. Listed on the Nigerian Stock Exchange with a presence in Africa’s two largest economies, Nigeria and South Africa, Lafarge Africa is actively participating in the urbanization and economic growth of Africa.


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