Firm Plans To Boost Business Operations With N90bn

Lafarge Africa Plc has announced plans to raise up to N90billion by way of rights to existing shareholders, subject to all corporate and regulatory approvals.
According to the company, the restructuring is aimed at leveraging position, improve its industrial operations as well as strengthen its profitability.
Besides, reforms implemented by the firm to improve operational efficiency both in Nigeria and in South Africa, as well as effective management of its borrowing costs have impacted its performance, as the Nigerian operations posted a profit of N1.9billion for the second quarter (Q2) 2018.
Strong market growth in Nigeria within the period reflected the end of the recession in the cement market.
Lafarge attributed the success in the Nigeria operations to operational stability, success of the turnaround plan implementation and volume improvement.
“Strong sales in Nigeria increased volumes in Q2 2018 by 18.7% (inclusive of export) and 9.6% in ReadyMix. In total, 68 kilotons of cement have been exported to Ghana with 28kt shipped in Q2 2018.”
However, the company explained that lack of large infrastructural projects impacted volumes in its South Africa operations, but added that revenues improved by 7.7 per cent on the back of price increase in all segments in Q1 and FX translational effect.
Lafarge also noted that turnaround plan in South Africa, which focused on cost containment, commercial transformation and industrial stabilisation is expected to improve its operations.
The Chief Executive Officer, Lafarge Africa, Michel Puchercos, said: “Our company saw strong market growth in Nigeria reflecting the end of the recession in the cement market. Cement demand has been on the rise since the beginning of 2018.
“We saw a 22 per cent increase in volume, benefiting from export to Ghana which began in Q4 2017”, the compnay noted.