LAFARGE Africa Plc has recorded a Revenue of N57 billion in the first quarter of 2015, which is 15 percent higher than Q1 2014.
Profit after tax was N8.6 billion and N14.6 billion of cash was generated from operations.
The Nigerian ReadyMix business expanded in the quarter to commence aggregate business in Nigeria.
“This is a remarkable step for our business in achieving our objectives of delivering innovative and quality building solutions.
The board of directors of Lafarge Africa Plc granted approval for a Mandatory Tender Offer to all qualifying shareholders of Ashaka Cement Plc in 2014.
“Consequently, the tender offer is now concluded and regulatory approval has been obtained for the approval of the shares transferred. Lafarge Africa ownership stake in Ashaka Cement has increased to 82.46 percent from 58.61 percent. We expect final regulatory approval in the coming weeks.”
In his statement, the chairman, Board of Directors, Chief Olusegun Osunkeye said “our company has delivered a good performance in spite of the general elections and market uncertainty. We remain highly committed to delivering a strong result in 2015 in line with our ultimate objective of improving value to our shareholders.”
Commenting on the results, the GMD/CEO, Lafarge Africa Plc, Mr. Guillaume Roux mentioned that “we have achieved stability in our operations, marked by our solid performance. The consolidation of our businesses and expansion projects presents an excellent foundation for future growth. Our management team is fully mobilized to deliver operational excellence whilst also leveraging on the strength of the Lafarge Group.”
The company’s and group’s revenues increased by 25 percent and 15 percent in Q1 2015, when compared to last year.
Wapco Operations had a strong quarter with 16 percent volume growth and a favorable mix and pricing, leading up to its overall 25 percent growth. The Ready-Mix revenue grew by 40% and South Africa by seven percent .
Ashaka was affected by the insecurity in the North and heightened election apprehensions in March, 2015, and saw a temporary revenue dip in Q1.
Wapco Operations (the company) had a very strong quarter following its volume and revenue growth plus enhanced operational efficiency. Overall Wapco Operation’s After Tax Profit grew by 19 percent.
South Africa and Ashaka recalibrated their production in Q1 with the #2 cement mill in Ashaka becoming operational again as of mid-February, and the South Africa kilns being overhauled in Q1. The absence of the #2 cement mill, in addition to the election apprehensions, were the key reasons for the Q1 34 percent volume drop in Ashaka when compared to Q1 2014. We expect Ashaka to return to normal volume and profit levels over the balance of the year. The kiln challenges in Q1 impacted the SA results by about N1 billion. We do not foresee such costs for the balance of the year.
Unicem had a strong operational performance, with very solid volumes. The company generated the strongest Q1 EBITDA margin in the Group. However, the operation was affected by the devaluation of the Naira, which resulted in N8.0 billion Unrealized Exchange Losses, posted in Q1. This revaluation resulted in the Net Income loss in Q1, whereof Lafarge Africa’s 42.5% share was N2.0 billion.
2015 stands to be an interesting year and we are very confident about future performance. The underlying growth trend in our sales reflects the huge market opportunities for cement sales and other business lines such as Ready-Mix and Aggregates.
We expect the cement market in Nigeria to remain strong with increased participation from the private sector. Our objective is deliver innovative and quality building materials to meet the specific need of our customers, while also driving value creation for our shareholders.

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