WAPCO records 26% profit increase in first 9 months

Lafarge WAPCO Cement Nigeria has recorded an increase in pretax profits of 26% for the first nine months of the year. The company reported pretax profits of N20.66 billion (~US$130 million) and revenues of N74.27 billion, up from N69.84 billion on the same period of 2012.

In 3Q13, sales grew 6% y/y to N24.8 billion and pretax profit was up 65% y/y at N6.9 billion thanks to improved gross margin at 39.9%. This made up for the 71% increase in OPEX to N2.3 billion. The expanded gross margin is somewhat inflated by the fact that in 3Q12 the company undertook maintenance activities for around 3 weeks, during which time the company also incurred additional costs for imported clinker.

Profit after tax soared 188% thanks to lower tax rates, landing at N5.874 billion in 3Q13.

Edited from various sources by Katherine Gu