Lafarge Africa posts N30.2bn loss for H1:2016

Lafarge Africa Plc has recorded a loss after tax of N30.2 billion for the first half (H1) of 2016, compared to profit after tax of N27.3 billion recorded for the same period of 2015, representing a decline of 210.73 per cent

This is coming on the heels of a profit warning issued by the company through the Nigerian Stock Exchange (NSE) last week on its unaudited second quarter result for the period ended June 30, 2016.

The company also reported a loss before tax of N30.2 billion, a depreciation of 198 per cent in comparison with profit before tax of N30.8 billion posted in the first half of 2015.

Financial charges for the company grew by 159.5 per cent to N4.6 billion against N1.8 billion in 2015. Revenue also declined by 29.5 per cent to N107.4 billion against N152.2 billion in 2015.

The company in its profit warning last week had explained that the impact of the naira devaluation is expected to be a N28 billion naira unrealised exchange loss arising from US Dollars borrowings, which at the time of devaluation consisted of 310 million US dollars shareholders loans and 85 million US Dollars external loans.

According to the company, these loans relates United Cement Company of Nigeria Limited (Unicem) and where mainly set up prior to the acquisition by Lafarge Africa Plc of its original 35 per cent stake in Unicem. The notice stated that Lafarge Africa Plc has then increased its stake to fully own Unicem.