Lafarge Africa Plc has attributed the strong margins in the Nigerian business to the commercial and energy strategies that were implemented in the business
The Chief Financial Officer of the company, Bruno Bayet, revealed this on Wednesday in Lagos while explaining the facts behind the company’s financial position for the 2018 first quarter.
It recorded net sales of N81bn for the first quarter of 2018, which is slightly lower than the corresponding period in 2017 by one per cent due to volume in Nigeria and South Africa.
Recurring earnings before interest tax depreciation and amortisation in Nigeria maintained margins at 29 per cent and delivered strong operational performance.
Bayet said timing of inventory movements and performance in South Africa affected the results for the quarter.
On the firm’s outlook, he said, “Full-year outlook for cement market remains favourable with positive signs of recovery in March. Our business turnaround actions will be consolidated further in 2018 through energy optimisation as well as commercial and logistic improvement.
“For South Africa, the economy is expected to grow in 2018. The turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilsation. The overall goal is to create value for shareholders through an attractive growth profile and good margins.”
He said the firm’s commercial, logistic and industrial operations in Q1 2018 had continued to improve strongly.
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