The share price of Lafarge Africa Plc gained the maximum 10.2% at the stock market yesterday as investors reacted positively to the first quarter (Q1) to March 31, 2017 results reported by the cement company. The financial performance showed a profit after tax (PAT) of N5.2 billion compared with a loss of N1.9 billion in the corresponding period of 2016.
Lafarge Africa reported a revenue of N81.3 billion, up by 35.1% from N52.4 billion. Cost of sales went up by 35.3% from N44.6 billion to N60.4 billion, while gross profit soared by 168.5% from N7.8 billion to N20.9 billion. Other income improved from negative N1.5 billion to positive N900 million in 2017.Net financing cost remained high at N3.9 billion, showing an increase of 94% compared with N2.0 billion in 2016.
Profit before tax (PBT) stood at N9.4 billion, as against a loss of N2.2 billion in 2016, while PAT was N5.2 billion compared with a loss of N1.9 billion in 2016. Impressed with the recovery from loss, investors reacted positively by increasing demand for the stock. As a result, it rose from N46.00 to close at N50.71 to lead the price gainers for the day.
Commenting on the results, Chief Executive Officer of Lafarge Africa, Michel Puchercos, said: “Our turnaround plan continued to deliver strong results in Q1 2017, in spite of the challenging environment in Nigeria & South Africa. In Nigeria, domestic cement volume improved by 6% compared to last quarter, thanks to seasonality, however the market declined compared to last year due to the recession that started in Q2 2016.”
