Lafarge Africa Plc (Holcim group) of Nigeria as reported a profit after tax of NGN57.3bn (US$37m) for the nine months ended 30 September 2024, marking a 46 per cent increase from the NGN39.3bn recorded in the corresponding period of 2023.
This growth was attributed to higher revenue, effective cost management, and increased operational efficiency during the review period.
In the company’s audited financial statements filed with the Nigeria Exchange Ltd on Tuesday, the revenue for the nine months climbed to NGN479.9bn (US$3.09bn), reflecting a 66 per cent growth from the NGN289.1bn posted in the same period of 2023. This surge was driven by higher sales volumes and improved pricing strategies. Despite the increase in revenue, the cost of sales also rose to NGN246.6bn, up from NGN141bn in the previous year.
However, Lafarge Africa Plc’s gross profit expanded by 58 per cent to NGN233.4bn, compared to NGN148.1bn in 2023. The company’s operating profit also saw an increase, rising to NGN126.6bn, representing an 83 per cent jump from NGN69.3bn in the previous year. The growth in operating profit was supported by a reduction in impairment losses on receivables and a moderate increase in administrative expenses.
Finance costs, however, surged to NGN36.1bn in 2024 from NGN11.6bn in 2023, driven by higher interest rates and increased borrowings. This partially offset the gains from improved revenue and cost management.
Nevertheless, profit before tax rose by 50 per cent to NGN91.5bn from NGN61.2bn in the prior year.
