Lafarge Africa FY'19 and Q1'20 Results Review: Pre-tax Earnings Improves as Finance Cost Drops


Thursday, June 04, 2020 / 04:25 PM / by Proshare Research / Header Image Credit: AFP


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Revenue and Product Line Review

Lafarge Africa Plc recorded an improved revenue figure of N63.6bn in Q1 2020 from N58bn in Q1 2019. This represents a growth of 9.8% YoY.  The growth in earnings was driven by increase in the sales of Cement which was up by 11% while revenue from the firm's Aggregate and Concrete products dipped by 21%.

However, the firm's revenue dipped by 2.2% in FY 2019. This was driven by drop in both Cement & Aggregate and Concrete products income by 2% and 21% respectively.


Chart 1: Lafarge Africa Plc Revenue Q1 2019 - Q1 2020

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Source: Proshare Research, Company Financials



Lafarge's Profit Before Tax grew significantly by 1285% in FY 2019 to N17.8bn from a loss position of N-1.51bn while it also recorded an improvement in Q1 2020 with a growth of 105%.


Chart 2: Lafarge Africa Plc PBT Q1 2019 - Q1 2020

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Source: Proshare Research, Company Financials


Finance Cost

The firm's finance cost keeps growing on a quarterly basis all through the year 2019. The cost moved from N8.32bn in Q1 2019 to N20.18bn in Q4 2019. This moderated to N2.57bn in Q1 2020. The significant drop in finance cost by 69.1% YoY to N2.6bn in Q1 2020 contributed to the leap in PBT in the quarter under review.


Chart 3: Lafarge Africa Plc Finance Cost Q1 2019 - Q1 2020

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Source: Proshare Research, Company Financials


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Net Assets

Lafarge Africa's balance sheet recorded an improvement following the deployment of proceeds from sale of Lafarge South Africa Holdings Limited (LSAH) and rights issuances for debt repayments in the last few quarters following the disposal of LSAH effective 31 July 2019. This is reflective in the leap in its Net Assets in Q3 2019


Chart 4: Lafarge Africa Plc Net Assets Q1 2019 - Q1 2020

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Source: Proshare Research, Company Financials


Ratio Analysis


Current Ratio

The current ratio of Lafarge Africa was above 75% all through the periods under review. The ratio is at 91.68% in Q1 2020 from 76% in Q1 2019. The reflection from the available data and analysis suggests that the firm is liquidity and could meet its short-term obligations.


Chart 5: Lafarge Africa Plc Current Ratio Q1 2019 – Q1 2020

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Source: Proshare Research, Company Financials


Acid Test Ratio

The company's acid test ratio also buttressed the current ratio as it suggests that the firm has enough liquidity to meet its short-term debt.


Chart 6: Lafarge Africa Plc Acid Test Ratio Q1 2019 - Q1 2020

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Source: Proshare Research, Company Financials


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Cement Sector

In our article written by the Proshare Content team titled: Nigeria Cement Market's New Chess Play; Understanding The Market Dynamics, it was stated that the Cement Sector market share is distributed as follows;

  1. Dangote Cement - 60%
  2. Lafarge Africa     - 30%; and
  3. BUA Cement        - 10%.


With the completion of the merger between CCNN and Obu Cement the eventual listing of BUACEMENT in January 2020, analyst estimated that 'a potential expansion will mean that BUA would increase its market share from its recent 10% to between 12 and 15%' which suggests that there might be a re-adjustment to the market share in the industry. See illustration 1


Illustration 1: Nigeria's Cement Market By Company Share 2019

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Recent Q1 2020 GDP data from the Construction sector showed that the sector grew by +1.69% in Q1 2020 from +1.31% in Q4 2019 +3.18% in Q1 2019. The low rate of growth in the construction sector suggests that there are rooms for further growth which will culminate in the struggle for more businesses and market share by the Cement manufacturers.

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Share Price Movement

The share price of WAPCO has so far shed -18.21% YTD as against -5.43% YTD loss recorded by the NSEASI. This shows that the share price of WAPCO has underperformed the ASI by 12,78% so far in 2020.

In the last one year, the share price has recorded +14.50% gain


Chart 7: Lafarge Africa Plc One Year Share Price Movement

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Source: Proshare MARKETS


Key Financials & Statistics


Q1 2019

Q2 2019

Q3 2019

Q4 2019

Q1 2020













Current Liabilities






Current Assets












Liquid Assets






Total Debts






Finance Costs






Total Assets






Net Asset







Current Ratio






Liquidity Ratio












Source: Proshare Research, Company Financials


Related News - Cement Sector

  1. Nigeria Cement Market's New Chess Play; Understanding The Market Dynamics
  2. Nigeria's Cement Market Battles: Lafarge Africa Plc in Focus
  3. Nigeria's Cement Market Battles: Dangote Cement in Focus
  4. Nigeria's Cement Market Battles: CCNN in Focus


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Related News - Lafarge Africa Plc

  1. Lafarge Africa Plc Records 92% Growth In PAT For FY 2019, Pays Shareholders 100k Dividend
  2. WAPCO Declares N8.1bn PAT in Q1 2020 Results,(SP:N10.70k)
  3. WAPCO To Hold 61st Annual General Meeting on June 3, 2020; Attendance By Proxy
  4. Mr. Mobolaji Balogun Retires as WAPCO Board Chairman; Appoints Adebode Adefioye As Replacement
  5. Lafarge Africa Plc FY'20 - Coronavirus: A Spanner in the Works?
  6. WAPCO Notifies Of Board Changes
  7. WAPCO Notifies of Board Meeting And Closed Period For Q1 2020
  8. New Lafarge Africa CEO Khaled El-Dokani Visits NSE, Assures Market Of Optimum Performance
  9. WAPCO Declares N15.5bn PAT in 2019 Audited Results; Proposes N1.00k Final Dividend; (SP:N8.95k)
  10. WAPCO Notifies of Board Meeting and Closed Period
  11. Lafarge Africa Plc Notifies of The Resignation of Mr. Jean-Philippe Benard From Its Board
  12. Michel Puchercos Resigns As GMD Of Lafarge Africa Plc; Appoints Khaled Abdelaziz El Dokani
  13. Lafarge Africa Q3 2019 Results Review: Shares Significantly Undervalued
  14. Lafarge Africa Appoints Lolu Alade Akinyemi As CFO
  15. Lafarge Africa Plc Q3 2019 - LSAH Sale... Good Riddance
  16. Lafarge Africa Plc 9M 2019 - Reaping Benefits of LSAH Sale
  17. Lafarge Africa Declares N20.57bn PAT in Q3 2019 Results,(SP:N14.70k)
  18. Alleged SEC Probe of Lafarge Africa: We Are Not In Receipt Of Any Letter From SEC - Lafarge
  19. Lafarge Africa Plc Rescheduled Court-Ordered      Meeting To Hold On August 23rd, 2019
  20. Bruno Bayet Resigns As CFO Of Lafarge Africa Plc
  21. WAPCO Declares N9.01bn PAT in Q2 2019 Result,(SP:N13.10k)
  22. WAPCO to Hold 60th AGM on July 22 2019
  23. WAPCO Announces Delay in Filing of the Company's Q1 2019 Unaudited Financial Statements
  24. WAPCO Declares N2.0bn Loss in Q1 2018 Result,(SP:N45.95k)

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