Home Business Lafarge Africa’s Poor Performance Worsens, Company Declares N19.8 Loss in 2018

Lafarge Africa’s Poor Performance Worsens, Company Declares N19.8 Loss in 2018

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Lafarge Africa Plc has declared another weak performance in its 2018 financial year ended result and accounts that was submitted to Nigerian Stock Exchange on Wednesday.

The cement manufacturing company reported N19.5 billion loss in 2018 from N34 billion loss reported in 2017 financial year.

Following weak performance last year, the management of the company has said no dividend to shareholders who invested in the company.

Despite increasing revenue by 3.1per cent to N308 billion in 2018 from N299 billion reported in 2017, significant increase in finance cost contributed to the company’s poor performance last year.

Check by Westernpostnigeria online revealed that Lafarge Africa‘s finance cost grew by 6.4 per cent to N45.97 billion from N43.2 billion reported in 2017.

Key factors to Lafarge Africa increase in finance cost include 34 per cent increase on interest from borrowing to N29.6 billion in 2018 from N22.1 billion in 2017 while Bank charges grew by 651per cent to N2.3 billion from N309 million in 2017.

Lafarge Africa’s long term borrowing hits N172 billion in 2018 from N68 billion, a key factor that contributed to the company’s finance cost last year.

However, revenue generated from cement rose from N235.8 billion in 2017 to N248.25 billion in 2018 while revenue generated from aggregate and concrete dropped by per cent to 4.2 per cent to N55 billion from N57.7 billion reported in 2017.

In addition, the company also reported 12.6 per cent decline on admixtures and other products to N4.9 billion from N5.62 billion in 2017.

Admixtures and other products represent revenue earned from the sale of fly ash, ready-mix pump sales and other mineral components from South African operations.

From balance sheet position, the company’s total assets dropped by eight per cent to N540.7 billion from N587.29 billion in 2017.