Lafarge Africa’s, Nigeria’s second largest cement manufacturer has just released its Q2 2016 result, where its net profit fell from 20 billion in Q2 2015 to a net loss of NGN32.2 billion in Q2 2016.
The company’s gross revenue fell by -29.4% to NGN107,3 billion compared to NGN152,1 billion the company posted last year.
Perhaps Lafarge has cut some jobs at its factories, administrative expenses fell to NGN12,2 billion compared to NGN14,0 billion spent managing its affairs last year.
With a cash balance of NGN17 billion for the half year, Lafarge’s total current asset stood at NGN139,9 billion.
Lafarge had issued a profit warning to its investors last month saying that “The Board of Directors of Lafarge Africa PLC wishes to inform the Nigerian Stock Exchange that its 2016 Quarter 2 results are expected to be affected by the impact of the Naira devaluation against USD resulting in an unrealised exchange loss. The current gas supply shortage is also expected to impact volumes for this quarter.”
The company suffered the loss as result of its “acquisition by Lafarge Africa PLC of its original 35% stake in Unicem. Lafarge Africa PLC has since then increased its in Unicem and held at the time of the devaluation, 50% of Unicem, which as fully consolidated. Lafarge Africa PLC now holds 100% of Unicem. The 28 billion Naira unrealised exchange loss will have no immediate impact on cash flow.”
Investors will be looking at results from Dangote Cement PLC’s its arch-rival.
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