Lafarge Africa reports 73% profit drop, proposes N16bn dividend
Lafarge Africa Plc has posted a profit after tax of N30.84 billion for the 2020 financial year, down from N115.10 billion a year ago.
The cement producer, however, saw its profit before minimum tax from continuing operations rose to N37.57 billion from N17.89 billion in 2019.
Its revenue increased to N230.57 billion in 2020 from N212.99 billion a year ago, according to its financial statements released on Wednesday.
The company’s board of directors has proposed a gross dividend of 100 kobo on every ordinary share in issue, amounting to N16.11 billion.
Lafarge Africa said its board approved on Jan. 20, 2021 the disposal of its investment in Continental Blue Investment Ghana Ltd via a planned sale of the total equity interest held by the company in CBI to a third party, F. Scott AG.
“Based on the agreement with F. Scott AG, dated February 2, 2021, the proceeds that will be realised by Lafarge Africa Plc from the transaction amounts to $8.2 million after repayment of loan granted by Lafarge Africa Plc to CBI Ghana ($5.8 million), settlement of earnout obligation by Lafarge Africa Plc ($3.6 million) and payment for the Lafarge Africa Plc’s shares by F. Scott AG ($6 million).”
According to the annual report, the parties have agreed to close the transaction no later than June 30, 2021.
“The disposal is part of group’s decision to reorganise its operations and achieve better synergies,” Lafarge Africa said.
