5 Key Takeaways - Lafarge Africa Plc Q3 2018 Conference Call and Earnings Presentation

Tuesday, October 17, 2018 06:08 PM / Proshare Markets

Lafarge Africa Plc held its Q3 2018 Investors and Analyst Conference Call Earnings Presentation. Proshare NG participated along with leading market analysts and professionals.

An overview of the company’s performance reflected that its Q3 top-line growth at group level remained strong compared to last year. Growth was recorded in Nigeria’s operations in Q3 with revenue at N49bn; South Africa revenue in Q3 closed at N23bn while good progress was made in the Ghana grinding station.

Lafarge Africa Plc recorded a net sales of N234.300bn in Q3 2018 as against N223.669bn in Q3 2017, up by 4.8% YoY as cement activities grew by 4.4% mainly from Nigeria while South Africa still affected compared to last year.

Its Profit After Tax was put at N938mln in Q3 2017 as against to N-10.32bn loss in Q3 2018 while the ongoing turnaround plan in South Africa has resulted in significant improvement in EBITDA.

At the close of trading today, the share price of Lafarge Africa Plc closed flat at N21.00.

In a nutshell, below are the key takeaways from the Q3 2018 earnings presentation made by the company’s management:

1. The company is fully hedged on its FX losses as there has been an improvement in FX losses due to hedging with further improvement expected in Q4 2018 with the approval of the right issue and debt restructuring by shareholders.
   
2. After four (4) consecutive southwards quarters; the South African operations is now out of the red leading the company to believe that the positivity is sustainable as the restructuring continues.
   
3. The newly commissioned 600KT grinding station in Ghana will start operations in November and expected to start contributing to the group in Q4 2018.
   
4. Lafarge Africa’s planned Rights Issue of N90bn is to be completed by year-end.
   
5.  Its route-to-market as well as energy initiatives is expected to continue to deliver in Q4 ‘2018 while stable pricing environment is also foreseen in Q4 ‘2018. 

Find out more information, Click here to access Lafarge’s IR Portal in Proshare Markets

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