Kayode Shopekan
Cement production company, Lafarge Africa (Wapco) Plc declared a 25.75% growth in net profit for second quarter of year (Q2 2021).
Lafarge recorded 29.40% increase in revenue, taking revenue for the period to N73.55 billion from N56.84 billion in the same quarter of 2020.
Join our WhatsApp ChannelFinancial report released by the company shows net income increased by N3.93 billion, depicting a growth of 25.75% from N15.26 billion recorded in the corresponding period of 2020 to N19.19 billion in the current period. From the previous quarter (Q1) however, the company showed a growth in its net profit by N10.05 billion.
The financial statement revealed that the company generates its revenue through the sale of cement and aggregates & concrete. The revenue from the sale of cement stood at N71.51 billion during the period, reflecting a growth of 26.95% from N56.33 billion in the same quarter of 2020, while revenue made from aggregates & concrete stood at N2.04 billion up from N519 million in 2020
Other income for the period, however, declined from N1.08 billion in 2020 to N145 million in the current period, despite increases recorded in government grants. This is due to the fact that the company recorded no gains on the disposal of its property, plants and equipment, as well as no writebacks of provisions no longer required during the period.
Lafarge Africa Plc witnessed a decline in net finance costs, attributable to the high foreign exchange gain recorded in the period, despite the hike in bank charges. Net assets for the period stood at N371.85 billion an uptick compared to N359.6 billion recorded as of December 2020.
