The synergies expected from the merger of the world’s two biggest building materials companies-Lafarge, the French giant and Holcim, its Swiss rival, are beginning to manifest as LafargeHolcim’s Zambian operations reported a jump in profits and Moody’s affirmed the new cement giant.
LafargeHolcim is a major player in the Nigerian market with significant or complete ownership of Ashaka Cement, Atlas Cement, Lafarge Ready-mix, UniCem and WAPCO.
Lafarge Zambia Plc, a subsidiary of LafargeHolcim reported a 4% rise in profits in the first six months of 2015 to K187 million.
The firm also saw its sales turnover jump by 14% to K700 million over the same period, while earnings per share rose by 4% to ZMW 0.936.
“The Company is ready to leverage the benefits of belonging to such a strong Group. It is determined to keep its market leadership and continue to offer our customers the best quality products and services,” Lafarge Zambia Chief Executive Officer Emmanuel Rigaux said.
The LafargeHolcim $40 billion merger was completed in July 2015, creating the world’s most advanced building materials company. The new firm has vast Research and Development capability, comprising 13 product development laboratories around the world employing over 1,100 experts. The global dimension of the merger meant the new Group is benefitting from the size of its industrial network, which will facilitate optimisations.
LafargeHolcim generates approximately 60% of pro forma 2014 revenues in emerging markets. The remaining 40% are generated in developed markets.
The business continues to be known as Lafarge Africa Plc in Nigeria. Lafarge Africa Plc is a holding company of LafargeHolcim assets in Nigeria and South Africa-it’s HQ is in Lagos where it is listed on the Nigerian Stock Exchange.
