Lafarge Africa has reported a remarkable N81.8 billion Free Cash Flow in H1 2023, leading to a substantial net cash position of N140.6 billion. The expiration of the company’s pioneer status tax holiday, lasting five years, has contributed to this surge.
Lolu Alade-Akinyemi, CEO of Lafarge Africa, expressed gratitude to employees and stakeholders for achieving strong results despite challenging economic conditions. He emphasized the company’s commitment to delivering sustained value as the market recovers throughout the year.
Discussing the results, Alade-Akinyemi highlighted a robust top-line growth of 10.3% in Q2 and 5.9% in H1. Operating profit also saw a significant increase of 13.3% in Q2 and 7.7% in H1, while Profit Before Tax improved by 29% in Q2 and 18% in H1. Due to the conclusion of the Pioneer Status Incentive, Q2 Profit After Tax experienced a more modest growth of 3.2%. The company’s balance sheet maintains strength with a robust net cash of N140.6 billion and H1 Free Cash Flow closing at N81.8 billion.
Lafarge Africa’s pioneer status incentive, which offered tax relief for approved activities, concluded with its expiration after initially being granted in 2018. The recent launch of their Eco label cement brand underscores their commitment to delivering value while prioritizing sustainability. The new product boasts a 30% lower carbon emission than local industrial standards, further aligning with the company’s sustainability goals.
Amidst challenges, strategic cost management initiatives have contributed to improved results. Lafarge Africa remains dedicated to innovation and eco-friendly growth, aiming to align with their sustainability ambitions.