Lafarge Africa Plc has declared a 98.8 per cent YoY growth in profit to NGN30.8bn (US$788.7m) for the FY20, compared to NGN15.5bn reported in FY19.
The growth is linked to the company's cost optimisation strategy to reduce loss arising from unproductive assets. This move led to the improvement in the company’s recurring EBIT margin from 16 per cent in 2019 to 20 per cent in 2020.
Lafarge's revenue expanded by 8.3 per cent YoY to NGN230.6bn, driven by the strong demand for cement. The growth in the company’s revenue arising from the sales of cement offset the decrease in revenue from the sales of aggregates and concrete in 2020.
Revenue generated from the sales of cement increased by 9.1 per cent, while the revenue Lafarge generated from the sales of aggregate decreased by 25.5 per cent.
