Lafarge Cement Plc posts profit of N18 billion in Q1 2022

Nigeria’s third Largest Cement producer, Lafarge (Wapco) Cement Plc has released its Q1 2021 Unaudited results reporting a profit of N17.55 billion during the period, representing 92.18% increase Y-o-Y.

A cursory view of the result reveals the company’s revenue was driven by growth in the company’s product categories. Meanwhile, Revenue growth for the period was at 26.77% year on year.

Key highlights of its results

• While Sales of cement increased by 25.96% and raked in N87.99 billion, sales of aggregates and concrete grew by 62.29%, generating N2.52 billion during the period.
• In the same vein, sale of mortar increased by 60.41%, to rake in N98.94 million.
• The company also made money from income earned from short-term fixed deposit investment, raking in a total of N54.69 million.
• Lafarge Cement Plc, however, grew its other income mainly from government grants, property disposal and sale scraps, rising 11.96% to N165.66 million year on year.
• Despite the growth in topline revenues, administrative expenses grew in double digits, subduing bottom-line profit. Selling and distribution expenses grew by 16.86%, as the company improved on its advertising and campaign spending. Advertising expenses grew by 26.92% while Campaign and Innovation expenses was recorded as N3.33 million compared to just N21,000 in the prior-year period.
• In addition, the company’s total assets are now N535.64 billion, while Net assets rose by 4.64% to N396.12 billion. The company’s long-term loans and borrowings stood at N2.29 billion.
• Commenting on the company’s Q1 2022 performance, the CEO of Lafarge Africa, said, “Our Q1 2022 performance shows significant improvement over Q1 2021, with net sales of +26.8%, recurring EBIT of +50.4% and net income of +92.2%”.
• “Coming after our very strong FY 2021 results, our Q1 2022 performance confirms the continued growth trajectory of our business. We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and agro-ecology footprint are in accordance with our net zero pledge journey”.

Lafarge Cement has earnings per share (EPS) for the period was at N1.09, a 91% increase from N0.57 in Q1 2021. The company has paid its final dividend of N1.00 to its shareholders for the financial year ended 31 December 2021.

Lafarge Cement Plc last traded at N25.55 per share and has returned 6.47% from year-to-date. Subscribe to the Nairametrics Stock Select Newsletter to view our stock pick.

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