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Tag: Lafarge Africa

  • Lafarge Africa trains construction workers

    Lafarge Africa Plc, has completed a two-day two Safety Awareness training programmes for over 70 employees of Brains & Hammers Limited and TEC Engineering Company (Nigeria) Limited, both in Kano.

    The health and safety training programmes are part of a broader commitment Lafarge Africa makes with its partners and customers to enable them improve the safety standards and practices on their sites.

    Speaking about the sessions, the Director for Health & Safety at Lafarge Africa Plc, Graeme Bride, said: “Lafarge is committed to positively impacting the construction industry in Nigeria and we are always willing to share our rich and global experience in health and safety with our customers and partners. Our goal is ultimately to conduct our business with zero harm to people and create a healthy and safe environment for our clients and employees.”

    One of the firms whose staffs were involved in the training exercise, Brains & Hammers Limited, is involved in the construction sector in Kano State and is currently building over fifteen 15,000 units of shops and offices across a land mass of about 1,370 meters by 1063 meters. On the other hand, TEC Engineering Company (Nigeria) Limited TEC- is currently building a five kilometer fly over in Kano, including culverts, roads and two kilometer bridges in Adamawa state.

    In acknowledging the impact of the training, participants from both firms expressed appreciation for the exercise, noting it to be a welcome development and an added value they’ve received from partnering with Lafarge.

    The training sessions were aimed at improving the safety standards and practices in these construction companies and on their project sites.

  • Lafarge Africa optimistic on profitability

    •Restructures South Africa’s operations

    Lafarge Africa Plc is optimistic that the ongoing implementation of a turnaround plan at its South African business and continuing strong performance of the Nigerian business will quicken the return of the group to profitability. Lafarge had in 2015 consolidated its businesses, majorly in Nigeria and South Africa, to form Lafarge Africa Plc.

    Chief Financial Officer, Lafarge Africa Plc, Bruno Bayet, said the cement group has started implementation key initiatives that will further improve the performance of its Nigerian business and help to turn around the dwindling South African business, which had impacted negatively on the group performance over the past three quarters.

    According to him, with all the initiatives, Lafarge Africa will return to profitability in the very near future, with further improvement expected in the performance of the South Africa’s operations in the second quarter.

    He explained that the decision of the company to increase dividend payout for the 2017 business year by 42.9 per cent was a demonstration of the confidence that the company remains on sound footing despite the negative bottom-line occasioned by timing of inventory movements and performance in South Africa.

    The board of directors of Lafarge Africa had recommended distribution of N13.01 billion to shareholders as cash dividend for the 2017 business year. A breakdown of the dividend recommendation showed that shareholders will receive a dividend per share of N1.50, 42.9 per cent above N1.05 per share paid for the 2016 business year. The company has indicated that the dividend would be paid from its 2012/2013 pioneer profit reserve, implying that there would be no deduction of 10 per cent withholding tax.

    He noted that the performance of the company’s business in South Africa had been impacted negatively by the arrival of new competitors between 2015 and 2016, technical disruption to production and decline in South Africa’s overall cement market.

    He outlined that the group was also concerned about the performance of the South African business and has taken decisive measures to fixing the issues with the turnaround plan in place and the appointment of a new executive team that will return the business to profitability.

    “Luckily all of those issues have been sorted and we are looking forward to a much brighter future,” Bruno said.

    He said the first quarter 2018 results of the showed stability in the market and operations which have kept revenues steady in the past quarter, pointing out that improvement plans in Nigeria delivered strong operational performance while turnaround actions will be consolidated further in 2018 through energy optimisation as well as commercial and logistic improvement.

    He said the outlook for the group remains bright with expectations of a strong market, favourable pricing in Nigeria and gains from logistic and commercial initiatives expected to sustain market share and help to build earnings before interest, tax, depreciation and amortisation (EBITDA) margins above the 35 per cent benchmark.

    With energy improvement plan in Nigeria continuing to outperform with increased use of alternative fuel and coal, capital expenditure for Nigeria will be mainly devoted to energy and production optimization while turnaround plan in South Africa is focused on cost containment, commercial transformation and industrial stabilisation.

    He assured that the company will continue to find ways of optimising its fixed costs noting that the increase in operating expenses was largely due to non-recurring restructuring costs.

    Key extracts of the interim report and accounts of Lafarge Africa for the first quarter ended March 31, 2018 showed net sales of N80.6 billion in first quarter 2018, a marginal decrease of one per cent from N81.3 billion recorded in the corresponding period in 2017 due to volume in Nigeria and South Africa.

     

     

  • LafargeHolcim increases stake in Lafarge Africa

    LafargeHolcim-the world leader in building materials and majority foreign core investor in Lafarge Africa Plc, has increased its equity in the Nigerian subsidiary to 76.32 per cent to control the much-needed three-quarters percentage shareholdings necessary for major corporate changes.

    A latest review of the shareholding structure of Lafarge Africa indicated that LafargeHolcim took advantage of the recent rights issue by Lafarge Africa to increase its majority stake by 4.97 percentage points from pre-rights issue position of 71.35 per cent to 76.32 per cent after the rights issue.

    LafargeHolcim had picked up its rights fully and further subscribed to the un-allotted shares, thus raising its percentage shareholding. LafargeHolcim had earlier indicated it would subscribe fully to its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Lafarge Africa three weeks ago listed about 3.1 billion ordinary shares of 50 kobo each. The supplementary shares arose from the cement company’s recent rights issue. Lafarge Africa had on November 24, 2017 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened on Friday November 24, 2017 and ran till the close of business on Friday, December 15, 2017.

    With the listing of the additional shares totalling 3.098 billion ordinary shares, the total issued and fully paid up shares of Lafarge Africa increased from 5.576 billion to 8.673 billion ordinary shares.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, has said the recapitalisation would help reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016, following a 40 per cent depreciation of the Naira against the Dollar.

    Balogun noted that LafargeHolcim’s decision  to convert existing loans to equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

  • Lafarge Africa to pay N13.01b dividend

    The board of directors of Lafarge Africa Plc has recommended distribution of N13.01 billion to shareholders as cash dividend for the 2017 business year. The dividend represents 43 per cent increase on the dividend payout for the 2016 business year.

    For the second consecutive trading session, Lafarge Africa’s share price rose by 35 kobo to close at N44 yesterday at the Nigerian Stock Exchange (NSE), playing a contrarian stock to the negative average day-on-day overall market return of -0.09 per cent. The cement company’s share price had risen by N1.25 or 2.95 per cent on Wednesday.

    A breakdown of the dividend recommendation showed that shareholders will receive a dividend per share of N1.50, 42.9 per cent above N1.05 per share paid for the 2016 business year. The company has indicated that the dividend would be paid from its 2012/2013 pioneer profit reserve, implying that there would be no deduction of 10 per cent withholding tax.

    Chief Executive Officer, Lafarge Africa Plc, Michel Puchercos assured that the cement company has been positioned to extract greater values for shareholders noting that the company’s recurring earnings before interest, tax, depreciation and amortisation (EBITDA) doubled to N57.6 billion in 2017.

    He attributed the strong margins in the Nigerian business to cost initiatives and more favourable pricing.

    According to him, Lafarge Africa’s industrial operations in 2017 were stable with plants operating at high reliability levels while the energy optimization plan for the company has been successful with increased use of alternative fuel and coal to offset gas shortages in operations in the Western Nigeria while plant operations in the eastern and northern part of the country relied mainly on gas and coal.

    He said these logistic, commercial and operational initiatives helped to sustain market share in the year under review.

    He pointed out that the South African business thrived in a challenging business environment, noting that operations in the country are set to stabilise in year 2018.

    He added that South Africa’s Lichtenburg plant returned to normal operations in the course of the year and a turnaround plan was initiated in order to transform the company’s operations.

    “The expected recovery in the macroeconomic environment in Nigeria is likely to have a positive impact in the overall cement market in Nigeria. Our Business turnaround actions will be consolidated further in 2018 through energy optimisation as well as commercial and logistic improvement. In 2018 we shall implement a continuous improvement programme that will see us building on earnings before interest, tax, depreciation and amortisation (EBITDA) margins above the 35 per cent benchmark,” Puchercos said.

    He noted that the capital expenditure expectation for Nigeria will be mainly devoted to energy and production optimisation while the turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilisation.

    “The overall goal is to create value for shareholders through an attractive growth profile and good margins,” Puchercos said.

    Meanwhile, key extracts of the audited report and accounts of Lafarge Africa for the year ended December 31, 2017 showed that the cement company’s group turnover rose by 36 per cent to N299.153 billion in 2017 as against N219.714 billion in 2016.  Gross profit also increased from N40.66 billion in 2016 to N50.759 billion in 2017. However, administrative expenses spiralled from N23.737 billion in 2016 to N41.595 billion in 2017. Finance cost also jumped from N38.216 billion to N43.216 billion due to high charges on over draft and bank borrowings. Lafarge Africa’s total loans and advances doubled to N256.546 billion in 2017 from N104.709 billion in 2016. With these, the company recorded a pre-tax loss of N34.03 billion in 2017. Lafarge had used tax credit of N39.99 billion in 2016 to mitigate pre-tax loss of N22.82 billion to end the year with a net profit of N16.9 billion in 2016. However, with no tax credit in 2017 and a tax expense of N281.46 million, the mid-line costs weighed heavily on the bottom-line.

    The decline in bottom-line performance was due to high administrative expenses and finance costs. Lafarge Africa however successfully raised N131 billion new equity funds through a rights issue in the last quarter of 2017, which is expected to restructure the balance sheet and deleverage the company, thus positively impacting finance costs.

    The company also noted that a detailed review of key projects in Nigeria such as the road in Calabar and of mothballed assets in South Africa led to an impairment of N19.1 billion.

    According to the company, the combination of these impairments and the net loss in South Africa of N187 billion led to a group net loss of N34.6 billion compared to a profit of N16.8 billion in 2016.

     

     

  • Lafarge Africa lists N131b rights shares

    Lafarge Africa Plc has listed about 3.1 billion ordinary shares of 50 kobo each, increasing the cement company’s market capitalisation to N278.79 billion at the weekend.

    The supplementary shares arose from the cement company’s recent rights issue. Lafarge Africa had on November 24, 2017 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened on Friday November 24, 2017 and ran till the close of business on Friday, December 15, 2017.

    With the listing of the additional shares totalling 3.098 billion ordinary shares, the total issued and fully paid up shares of Lafarge Africa increased from 5.576 billion to 8.673 billion ordinary shares.

    The allotment results earlier showed that LafargeHolcim, which held the majority equity stake of 72.59 per cent in Lafarge Africa, fully picked up its rights, contributing some N96 billion to the recapitalisation. LafargeHolcim had earlier indicated it would subscribe fully to its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun has said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    In the third quarter ended September 30, 2017, Lafarge Africa’s net finance expense jumped from N7.4 billion in third quarter 2016 to N17.31 billion in 2017.

    Balogun noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

     

  • Investors net worth drop by 0.66% on NSE

    Investors net worth drop by 0.66% on NSE

    Investors net worth on the Nigerian Stock Exchange ( NSE ) on Tuesday dipped by 0.66 per cent due to price depreciation.

    The All-Share Index lost 279.92 points or 0.66 per cent to close at 42,299.56 compared to 42,579.48 achieved on Monday.

    Also, the market capitalisation closed lower at N15.179 trillion as against N15.280 trillion posted on Monday, representing a loss of N101 billion or 0.66 per cent.

    An analysis of the price movement table showed that Seplat for the second consecutive day topped the losers’ table, dropping by N13.50 to close at N657.90 per share.

    International Breweries trailed with a loss of N2.85 to close at N57, while Dangote Cement recorded a drop of N2 to close at N257 per share.

    Lafarge Africa shed N1.30 to close at N50, while Julius Berger was down by N1.10 to close at N24.85 per share.

    Conversely, Nestle led the gainers’ table, gaining N22 to close at N14 per share.

    Total followed with a gain of N15 to close at N232, while Mobil Oil recorded a gain of N3.40 to close at N183.90 per share.

    Conoil improved by N3.15 to close at N35.25, while Cement Company of Northern Nigeria appreciated by N1.35 to close at N18.20 per share.

    In spite of the drop in the market indices, the volume of shares traded closed higher with an exchange of 438.65 million shares worth N8.79 billion transacted in 5,433 deals.

    This was against the 384.26 million shares valued at N5.47 billion traded in 4,774 deals on Monday.

    Transcorp dominated trading activities emerging as the most active stock during the day, exchanging 45.09 million shares worth N93.04 million.

    Diamond Bank followed with an account of 43.35 million shares valued at N105.73 million, while FBN Holdings traded 42.35 million shares worth N490.91 million.

    Fidelity Bank exchanged 40.02 million shares valued at N119.99 million and Access Bank sold 27.39 million shares worth N355.31 million.

    NAN

  • Lafarge Africa rewards customers

    Building Solutions and Infrastructure Company, Lafarge Africa Plc, will continue to appreciate its customers across the country for their loyalty over the years has accounted for the success of the company in Nigeria and beyond.

    To this end, the cement maker, over the weekend, held a Customer Appreciation Dinner for its customers from the Southeast and Southsouth regions.

    The event held at the Ibom Hotel and Golf Resort, Uyo.

    Lafarge Africa Plc Marketing Director Mr. Vipul Agrawal said Lafarge was committed to providing world-class service to its customers. “We have put processes in place and made adequate investment to allow us attend to customers better. Outside our numerous customer touch points, we value moments such as this when we have the opportunity to say thank you in a special way and celebrate the customer,” said Agrawal.

    The forum provided an opportunity for Lafarge customers to engage in frank and open discussions with the brand and it also enabled the company’s senior management to feel the pulse of its customers, as well as resolve critical issues and complaints.

    Some of the customers were rewarded for their loyalty to the brand and performance in 2017. Similar customer appreciation events are scheduled to hold across the country.

     

  • Lafarge Africa closes application for N132b rights issue

    Lafarge Africa Plc at the weekend closed application list for its N131.65 billion rights issue, rounding off the subscription to its major capital raising aimed at deleveraging its balance sheet and rebuilding a more supportive capital base.

    Lafarge Africa had on November 24, 2017 launched an offer to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares were pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list opened on Friday November 24, 2017 and ran till the close of business on Friday, December 15, 2017.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa, had earlier indicated it would subscribe fully to its rights. LafargeHolcim had proposed to pick up its rights under a debt-for-equities deal that will see conversion of LafargeHolcim’s dollar-based loan to equities.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    In the third quarter ended September 30, 2017, Lafarge Africa’s net finance expense jumped from N7.4 billion in third quarter 2016 to N17.31 billion in 2017.

    Balogun noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Lafarge Africa ended the third quarter with a marginal recovery in profitability as significant increase in net interest expense constrained the bottom-line. Despite about 39 per cent growth in sales, Lafarge Africa ended the third quarter with a pre-tax profit of N1.08 billion.

    Key extracts of the interim report and accounts of Lafarge Africa Plc for the period ended September 30, 2017 showed that sales rose by 38.9 percent to N223.67 billion in 2017 as against N161.04 billion recorded in comparable period of 2016. Gross profit also surged from N18.11 billion in 2016 to N57.31 billion in 2017. The cement manufacturer pooled operating income of N18.40 billion in 2017 compared with operating loss of N32.97 billion in comparable period of 2016.

    However, net finance expense jumped from N7.4 billion to N17.31 billion. Profit before tax thus depressed to N1.08 billion, albeit a considerable recovery when compared with pre-tax loss of N40.37 billion in 2016. After taxes, net profit stood at N937.91 million by September 2017 compared with net loss of N37.4 billion in 2017. Earnings per share was modest at 10 kobo in 2017 compared with net loss per share of N8.27 in corresponding period of 2016.

     

  • Why we are raising N131.65b, by Lafarge Africa

    • Urges shareholders to pick up rights

    Lafarge Africa Plc has urged shareholders to fully participate in the ongoing capital raising exercise by the cement company in order to support the realisation of its strategic growth objectives.

    At an interactive session at the Nigerian Stock Exchange (NSE), Chairman, Lafarge Africa Plc, Mr Mobolaji Balogun, urged shareholders to take up their rights to demonstrate their commitment to the achievement of the company’s strategic growth objectives.

    Explaining the reason for the rights issue, Balogun said Lafarge Africa through a series of transaction completed a 100 per cent indirect acquisition of United Cement (Unicem) through its acquisition of a 100 per cent stake in Egyptian Cement Holdings and by the acquisition Lafarge Africa inherited $507 million shareholder loans, along with $88 million of third party foreign currency debt, which were utilised for the 2.5 million metric tonnes capacity expansion of the cement plant in Calabar.

    He noted that while the capacity expansion, which was completed in record time and to budget, brought the plant’s capacity to five million metric tonnes, the debt has exposed Lafarge Africa to a significant foreign currency translation loss following the 40 per cent devaluation in the Naira.

    He pointed out that short term remedial action was taken by the board of LafargeHolcim in third quarter 2016 to shield the company from further devaluation.

    He said the net proceeds of the N131.65 billion rights issue would be used to refinance a portion of the company’s foreign currency denominated shareholder loans by way of a debt-to-equity conversion, finance working capital requirement and expand operation.

    Lafarge Africa is raising N131.65 billion through a rights issue of 3.098 billion shares of 50 kobo each to existing shareholders at a price of N42.50 per share. The rights issue opened on November 24, 2017 and it will close on December 15, 2017. It was pre-allotted on a basis of five new shares for every nine shares held as at close of business on November 1, 2017.

    In his remarks, Chief Executive Officer, Lafarge Africa Plc, Mr. Michel Puchercos said the rights issue was in the best interest of Lafarge Africa and its shareholders.

    He noted that despite the challenging economic and regulatory operating environment, the company has continued to make significant progress on a number of fronts, ensuring solid operating performance.

    He added that the results of the company’s transformation are already evident as seen in the first quarter 2017 unaudited results which show a robust revenue growth of 55 per cent, evidencing a clear demonstration of the company’s commitment to sustained operational excellence.

     

  • Stock Exchange begins trading on Lafarge Africa’s N132b rights issue

    The Nigerian Stock Exchange (NSE) has begun trading in the rights of Lafarge Africa Plc, giving renouncing shareholders opportunity to trade on their shares. Lafarge Africa is trading at the NSE at N50 per share; about 18 per cent gain on the rights’ offer price of N42.50 per share.

    Lafarge Africa had at the weekend opened application list for its N131.65 billion rights issue as the cement group seeks to deleverage its balance sheet and rebuild a more supportive capital base. In the third quarter ended September 30, 2017, Lafarge Africa’s net finance expense jumped from N7.4 billion in third quarter 2016 to N17.31 billion in 2017.

    Lafarge Africa plans to raise N131.65 billion through a rights issue of about 3.1 billion ordinary shares of 50 kobo each at N42.50 per share. The new shares have been pre-allotted to shareholders on the basis of five new ordinary shares for every nine ordinary shares held as at the close of business on November 1, 2017. The acceptance list, which opened on Friday November 24, 2017, will run till the close of business on Friday, December 15, 2017.

    LafargeHolcim, which holds the majority equity stake of 72.59 per cent in Lafarge Africa, has already indicated it will subscribe fully to its rights.

    Chairman, Lafarge Africa Plc, Mr. Mobolaji Balogun, said the recapitalisation would help to reduce the group’s exposure to adverse foreign currency translation losses as experienced in 2016 following a 40 per cent depreciation of the Naira against the Dollar.

    He noted that the decision of LafargeHolcim to convert existing loans into equity demonstrates the core investor’s continued belief in the Nigeria story, pointing out that the rights issue is the largest so far in the Nigerian capital market and the largest investment in a listed company by an investor.

    According to him, the rights issue will help to reduce the group’s foreign currency exposure by 50 per cent while the remaining portion of the debt, with the support from LafargeHolcim, has been refinanced and hedged for 12 months.

    Lafarge Africa ended the third quarter with a marginal recovery in profitability as significant increase in net interest expense constrained the bottom-line.

    Despite about 39 per cent growth in sales, Lafarge Africa ended the third quarter with a pre-tax profit of N1.08 billion.

    Key extracts of the interim report and accounts of Lafarge Africa Plc for the period ended September 30, 2017 showed that sales rose by 38.9 percent to N223.67 billion in 2017 as against N161.04 billion recorded in comparable period of 2016. Gross profit also surged from N18.11 billion in 2016 to N57.31 billion in 2017. The cement manufacturer pooled operating income of N18.40 billion in 2017 compared with operating loss of N32.97 billion in comparable period of 2016.

    However, net finance expense jumped from N7.4 billion to N17.31 billion. Profit before tax thus depressed to N1.08 billion, albeit a considerable recovery when compared with pre-tax loss of N40.37 billion in 2016. After taxes, net profit stood at N937.91 million by September 2017 compared with net loss of N37.4 billion in 2017. Earnings per share was modest at 10 kobo in 2017 compared with net loss per share of N8.27 in corresponding period of 2016.