May 26, 2021 / 11.00AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV
Lafarge Africa Plc at its 62nd Annual General Meeting assured shareholders of improved market performance in the 2021 financial year. The Chairman Prince Adebode Adefioye in his remarks at the event said despite the COVID-19 pandemic that disrupted global economic activities and the supply chain, Lafarge achieved an 8.3% growth in sales revenue to about N230.6bn.
According to him, the Profit After Tax for 2020 FY grew to N308bn translating to a 99% achievement for the group. He said cash generation for the year was equally strong with Earnings Before Interest, Depreciation, and Amortization, (EBITDA) at N73.3bn and Free Cash Flow(FCF) at N47.4bn.
In the area of corporate social responsibility (CSR), Adefioye said the company committed N500m towards the provision of palliatives during the height of the COVID-19 pandemic, while its "Bridge the Literacy Gap Together" initiative started in 2014 had served 700,000 pupils.
The Independent Auditor KPMG Nigeria represented by Oluwatoyin Gbagi, FCA, and the Audit Committee Chaired by Mr. Adebayo Adeleke in their separate reports stated that the 2020 financial statement of Lafarge Africa Plc, aligned with the provisions of the Companies and Allied Matters Act (CAMA), and the International Financial Reporting Standards (IFRS).
Some of the shareholders commended Lafarge Africa for its 2020 performance and tasked its management to sustain the tempo to create incremental investor value in 2021.
Mr. Patrick Ajudua lauded the company for paying N1.00 dividend per ordinary share and called on the company to address its cost of sales by leveraging backward integration to source for local inputs for its production.
He also tasked the company to drive the advocacy for deploying concrete for road construction in the country. Mrs. Bisi Bakare also commended the company for paying the N1.00 dividend amidst the challenging economic environment in 2020, and also the CSR efforts in deepening literacy across the country.
Sir Sunny Nwosu on his part called on the Lafarge board to give priority to improving the transportation and delivery of its products across the country.
The Group Managing Director/Chief Executive Officer of Lafarge Mr. Khaled El-Dokani in his remarks and response to some of the issues raised by shareholders said the 20km concrete road project in Cross River State, would serve as a prototype and establish a case for the use of concrete roads in Nigeria.
In the area of reducing the company's cost of sales, he said the company was taking its backward integration seriously, with the production of bags for its cement products.
For improving transportation and delivery he said 8 additional depots were created with over 800 trucks now in the company's logistics network.
Mr El-Dokani said Lafarge Africa increased production by 300,000 tonnes of cement in 2020.
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