Lafarge Africa posts higher profit, sells stake in Ghanaian cement firm

Lafarge Africa Plc has reported a profit before tax of N23.98 billion for the second quarter of the 2021 financial year, up from N19.37 billion in the same period of 2020.

The cement producer said on Thursday that its profit after tax rose to N19.19 billion in Q2 2021 from N15.26 billion in Q2 2020.

Its unaudited financial statements showed that its revenue increased to N73.55 billion in the three-month period ended June 30, 2021 from N56.84 billion in the same period a year earlier.

Lafarge Africa noted that its board of directors approved on Jan. 20, 2021 the disposal of the company’s investment in Continental Blue Investment Ghana Ltd via a sale of the total equity interest held by the company in CBI to a third party, F. Scott AG.

“The sale was concluded on June 30, 2021. The proceeds realised by Lafarge Africa Plc from the transaction amounted to $8.2m after repayment of the loan granted by Lafarge Africa Plc to CBI Ghana ($5.8 million), settlement of earn out obligation by Lafarge Africa Plc ($3.6 million) and payment for Lafarge Africa Plc’s shares by F. Scott AG ($6 million),” it said.

The Chief Executive Officer, Lafarge Africa, Khaled El Dokani, said, “Our performance remained resilient in Q2 2021, with net sales of +29.4 per cent, recurring EBIT of +11.1 per cent and net income of +25.7 per cent, compared to previous year.

“We are equally pleased with the progress we are making on sustainability; our use of affordable clean energy and our agro-ecology footprint are in accordance with the acceleration of our net-zero pledge.”