afarge Plc’s profit before tax rose by 18 per cent in first half 2023.
However, the expiration of the pioneer status incentive (PSI) impacted profit after tax.
The unaudited financial report showed that net sales grew by 10.3 per cent when compared to the 5.9 per cent recorded in the previous year.
Operating profit for second quarter and first half grew by 13.3 per cent and 7.7 per cent. The balance sheet of Lafarge Africa showed net cash position of N140.6 billion, while the first half free cash flow closed at N81.8 billion.
Chief Executive Officer, Lafarge Africa Plc, Lolu Alade-Akinyemi said the company remains focused on delivering sustainable value to all stakeholders as the market recovers for the rest of the year.
“We achieved strong top-line growth of 10.3per cent in Q2 and 5.9per cent in H1; Operating Profit growth of 13.3per cent in Q2 and 7.7per cent in H1, and Profit Before Tax improvement of 29per cent in Q2 and 18per cent in H1. Owing to the expiration of the Pioneer Status Incentive, Q2 Profit After Tax growth was a muted 3.2per cent.
“This is backed up by a strong Free Cash Flow position and a healthy Balance Sheet. The recent launch of our Eco label cement brand re-affirms our commitment to delivering superior value to our customers. This new product has been certified to be eco-friendly with 30per cent lower carbon emission than the local industrial standard.
“Our strategic and cost management initiatives have contributed to improved results despite the challenges. We remain steadfast in our commitment to driving innovation and accelerating green growth in line with our sustainability ambitions and targets.”