Lafarge Africa Plc, a sub-Saharan African building materials company, on Monday announced a loss after tax of N34.601 billion for the year ended December 31, 2017, compared with a profit after tax of N16.898 billion in 2016.

The audited results showed that Lafarge recorded revenue of N299.153 billion, up 36 per cent from N219.714 billion in 2016.

Gross profit stood at N50.759 billion in 2017, compared with N40.662 billion in 2016. Administrative expenses jumped from N23.737 billion to N41.595 billion in 2017, while finance cost rose from N38.216 billion to N43.216 billion due to high charges on over draft and bank borrowings. Lafarge Africa’s total loans and advances increased to N256.546 billion, from N104.709 billion in 2016.

The company ended the year with a loss of N34.601 billion as against a profit of N16.898 billion. Despite the loss, the directors have recommended a dividend of N13.010 billion, which translates to 150 kobo per share, up from 105 kobo paid the previous year.

According to the company, a detailed review of key projects in Nigeria such as the Road in Calabar and of mothballed assets in South Africa led to an impairment of N19.1 billion.

“The combination of these impairments and the net loss in South Africa of N187b billion led to a group net loss of N34.6 billion compared to a profit of N16.8 billion N in 2016,” the company said.

However, the Chief Executive Officer of Lafarge Africa Plc, Michel Puchercos attributed the strong margins in the Nigerian business to cost initiatives and more favorable pricing.

According to Puchercos, Lafarge Africa Plc’s industrial operations in 2017 were stable with plants operating at high reliability levels.

He also noted that the energy optimisation plan for the company has been successful with increased use of Alternative Fuel and Coal to offset gas shortages in operations in the West while plant operations in the eastern and northern part of the country relied mainly on gas and coal. He said these logistic, commercial and operational initiatives helped to sustain market share in the year under review.

“The South African business thrived in a challenging business environment, operations are set to stabilize in year 2018. The Lichtenburg plant returned to normal operations in the course of the year. A turnaround plan was initiated in order to transform the company’s operations,” the company said.

Looking ahead, Puchercos said: “In 2018 we shall implement a continuous improvement programme that will see us building on EBITDA margins above the 35 per cent benchmark.”

http://investorsking.com/lafarge-africa-reports-n35bn-loss-full-year-2017/

Unfavourable Economy


Person Never Chop Food na Cement to Build House him wan buy?

Their Problem

And one daura man God will help me to punish wants to stay for another 4 years.

Sorry o..

People will not read this article to know that it's their south Africa wing that contributed to the huge loss more for lafarge group.

Lafarge is a French owned company. Make dem close the Nigerian branch and continue operations in other African nations.

Somebody will blame Buhari for this.

That cement good sef?
We have more than 5 cement companies in this country and none of them want to reduce the price

Buhari Is Working

Hmmmmm!!!

If you watch Dangote’s recent video with Strive Masiyiwa in Singapore, Dangote said in year 2000 before he started manufacturing cement, he approached Lafarge and offered them a partnership where Lafarge would manufacture cement for him and brand it Dangote for a 30% stake.

They wanted a majority stake of 51%.Dangote Pleaded for 30%. Lafarge walked away. The rest is history.

f

okay ...thank God I am not in Nigeria

Do not trust these guys. Thiis could be another accounting trick to avoid paying tax , subsidize their parent body and transfer money to their own countries.

sweetval:
And one daura man God will help me to punish wants to stay for another 4 years.

learn to read. The impairment loss came from SA. They made more money in nigeria

While their massive loss came from SA , 2017 was a turbulent year for most businesses in Nigeria.

If you know your first reaction was to call Buhari a failure when you read the headline. come and stand behind me and declare my expectation shall not be cut short.

Why will they make profit when they dont want to reduce price. The cow president we have does not want investors because he wants to turn Nigeria to a grazing ground.

PapaBrowne:
Hmmmmm!!!

If you watch Dangote’s recent video with Strive Masiyiwa in Singapore, Dangote said in year 2000 before he started manufacturing cement, he approached Lafarge and offered them a partnership where Lafarge would manufacture cement for him and brand it Dangote for a 30% stake.

They wanted a majority stake of 51%.Dangote Pleaded for 30%. Lafarge walked away. The rest is history.

same way he bot nigerias refineries. Which d dullard yar adua reversed the sale. Today dangote refinery is near completion which TAM is still killing nigerias refinery

blame PMB

What they published is for Africa, they should unfold the 2017 profit and lost account for Nigeria.
Most of this international company make huge profit from Nigeria and use it to finance other lost making country like SA

yeyerolling:
same way he bot nigerias refineries. Which d dullard yar adua reversed the sale. Today dangote refinery is near completion which TAM is still killing nigerias refinery

Exactly!

This is bound to happen since the body odour of the president still terrorize the economy....

Bad business. Hold Buhari responsible for the loss.

Buhari has no economic policy really helping businesses which indirectly is affecting the labour force, and d masses in general.

For ye buhari fans, its ok to kiss my ass

About Buhari re-election......the problem is not voting for buhari again, the question is is there any better candidate? Except they wake Yaradua back from d grave and we all vote him again

Many Nigerians don't think loss is part of business. That is the reason they give up when it happens. Sometimes you lose a battle in order to win the war.

Germandude:
Lafarge is a French owned company. Make dem close the Nigerian branch and continue operations in other African nations.

FYI.....the Nigerian branch was highly profitable, that loss ur seeing there was from their South African subsidiary which covered up their profits in other countries.

By ur logic, they should rather close down the South African subsidiary and focus more on their Nigerian business....... cuz it seems Nigeria is a better place for business.

I know u are disappointed sir and won't like this news. I am so, so sorry.

Sorry about that

Please see my signature