Consolidated revenues for Lafarge Africa Plc have increased by 5% versus 2014 in a flat to declining market, while 3Q15 revenues were behind 3Q14. EBITDA over the period declined by 6%, to N43.2 billion, with the South African business climate remaining challenging, despite the fact that top-line growth was stable. Growth is expected in the cement market in the next year.
Ready-Mix and Wapco Operations have driven the YTD revenue numbers with 31% and 11% YTD growth respectively. South Africa’s revenues were marginally below those of 2014 in Rand, but inline with 2014 in Naira. YTD numbers on Ashaka were unaffected by the unrest at the start of the year and operations have since returned to normal.
Industrial performance was good, with stable plant operations across the board. Cash flow from operations at the end of the nine-month period was robust, at N36.7 billion.
Lafarge Africa Plc concluded the second tranche of the acquisition of FMN 15% stake in Unicem. This brings Lafarge Africa Plc’s ownership stake in Unicem to 50%, with the LafargeHolcim Group owning the remaining 50%. The acquisition has lead to an expansion in the Lafarge Africa scope in Nigeria.
The Nigerian market is temporarily challenging, but is expected to return to growth as the transition period is completed. This will translate into future growth in the infrastructural space in the short to medium term. Lafarge Africa Plc’s expansion plans are on track, with the aggregate business ramping up, new ReadyMix plants being erected, the Unicem second line set to come on stream in 2016 and the Ashaka expansion plans being finalised.Commenting on the results, the CEO, Lafarge Africa Plc, Mr. Peter Hoddinott said that "in spite of the challenging business environment and competitive situation, our Company has delivered a good performance during the year. Our business expansion is remarkable and we are optimistic that our Company will continue to deliver strong value to our shareholders."
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/africa-middle-east/09112015/lafarge-africa-plc-9-month-results-942/