A construction solutions company in sub-Saharan Africa and a member of Holcim, Lafarge Africa Plc., attributed its growth to improved property investment and government infrastructure spending.
The company also said the 27.1% increase in net sales was mainly due to a strong improvement in volumes and prices. It reported profit after tax (PAT) of N51 billion, a growth of 65.4% over the previous year’s result.
The company’s chairman, Prince Adebode Adefioye, speaking at its 63rd annual general meeting in Lagos, said the audited financial result for 2021 is an indication of the strength of the execution by the company for its strategy, which has led to impressive results.
Adefioye hinged the company’s success on the growing demand for cement as building and construction activities resumed across the country.
“The cement industry experienced another year of strong growth, driven mainly by increased government spending on infrastructure and improved real estate investment by private and commercial homebuilders,” he said.
According to Adefioye, the company benefited from these improved market conditions with growth in volumes and prices; with net sales up 27.1% year-on-year to close at N293.1 billion.
“The positive impact of increased net sales, moderation in cost of sales, selling, distribution and administrative expenses in an environment of inflation and devaluation pressures led to an improvement margins recorded for the year.
“Through effective governance frameworks, reviews, and monitoring and evaluation, we embed a culture of ownership, ethics and corporate responsibility in our operations. We also continue to seek out and leverage strategic partnerships that help maintain value and positively impact our stakeholder groups.
“We offer thought leadership initiatives to strengthen our voice and position as a leading company in Nigeria committed to Environment, Social and Governance (ESG),” he said.
Adefioye, while thanking the shareholders for their support over the years, said the dividend payment was a good return on their investments, assured them of the payment of the final dividend to the shareholders, whose names appear in the register of members on April 1. , 2022 and who had carried out the electronic registration of the dividends and mandated the registration agent to pay their dividends directly into their bank accounts.
While responding to shareholders at the meeting, Country Managing Director, Lafarge Africa Plc., Mr. Khaled El Dokani said, “Our 2021 result was a record and PAT was also the best reported profit in a decade. Our revenue was primarily driven by volume growth, as well as the price improvement we saw throughout the year, both of which contributed to our revenue vs. last year.
El Dokani further remarked, “In 2021, the demand for cement was quite good, I think the country has shown extreme commitment to infrastructure development at all levels.”
He noted that the company’s performance once again demonstrated the tenacity of the board, management and employees in achieving the overall objective of creating value for its stakeholders.
“Our journey has been one of resilience, integrity and innovation as we strive to meet the needs of our customers, while adapting to changing economic situations and growing demand for sustainable practices in the construction industry. I sincerely thank the entire Lafarge Afrique team for their contribution to these successes,” he added.
Also speaking at the event, Shareholder Representative Rev. Olagoke Olusegun commended the company for maintaining profits and paying dividends despite last year’s tough and challenging economy.
Another shareholder, Mr. Tunji Bamidele, thanked the company for its resilience throughout the global pandemic and the difficult business environment, which led to the achievement of outstanding results.
Shareholders unanimously agreed to the proposed total dividend of 200,000 per share.