By Nkiruka Nnorom

Lafarge Africa Plc has reported decline in key performance indicators for its financial year ended December 31, 2014 with the profit after tax falling by a 43 percent. Highlights of the 2014 results released, weekend, showed that the it recorded N34.661 billion as profit after tax for the year as against N60.953 billion achieved in the same period in 2013.

Similarly, its profit before tax fell by 36 percent to N41.198 billion from N64.262 billion reported in the previous year. During the year, it recorded basic earnings per share (EPS) of 738 kobo representing 45 percent decline over 1,343 kobo achieved in 2013.

However, there was no obvious change in the revenue as it stood at N205.945 billion compared to N206.073 billion recorded in the previous year, while cash of N49 billion was generated from the operations during the period. The cost of sales rose marginally by one percent to N138.754 billion from N137.364 billion in 2013.

The Board of Directors has also approved a dividend of N3.60, representing a nine percent increase over prior year subject to shareholders approval. In his statement, the chairman, Board of Directors, Chief Olusegun Osunkeye CON, said “it is with pleasure that we publish the first audited results of our newly transformed company. The good performance even in a volatile market affirms the strength of our new company and our commitment to achieving excellence”.

Also commenting on the results, the GMD/CEO, Lafarge Africa Plc, Mr. Guillaume Roux, said: “Our company has shown impressive performance; our business combination plans have been well executed within set timelines. We are committed to improving operational performance by leveraging on opportunities this presents to us to deliver sustainable returns to our shareholders’.

“Lafarge Africa has shown remarkable performance in the year and we remain highly committed to driving business excellence. We expect cement demand to increase both in Nigeria and South Africa in 2015. “In Nigeria, the demand growth should be supported by increasing needs for housing and infrastructures, but could be lower than normal growth levels given the exchange rate development. This should be partly cushioned through the South African cash flow,” Roux added.

He assured of the company’s commitment to delivering innovative building materials while leveraging on the operational strength and pedigree of the Lafarge Group. He recalled that on 7 November 2014, Nigerian Cement Holdings B.V. (NCH), a 50 percent affiliate of Lafarge Africa Plc, entered into an agreement with Flour Mills of Nigeria, defining a roadmap to purchase Flour Mills of Nigeria’s 30 percent investment in United Cement Company, UNICEM, saying, “We are pleased to announce that the first phase of the acquisition of 15 percent was completed recently.”