Lafarge Africa’s Board of Directors Propose a Dividend of N1.90 per Unit

The Board of Directors of Lafarge Africa recently announced that it will pay shareholders a dividend of N1.90 per unit of its shares for the year ending December 2023, which amounted to a total of N30.60bn. However, it was reported that in 2022, the total dividend payout was N32.22 bn.

On Thursday, the firm filed a corporate notice with Nigeran Exchange Limited after the company's board of directors proposed the dividend for shareholders. However, shareholders will deliberate on this decision for that period at Lafarge's next Annual General Meeting (AGM).

The notice that was sent to the Nigerian Exchange Limited partly reads,

"A final dividend of 190 kobo per unit of 50 Kobo ordinary share, payable from the Pioneer Reserve, will be paid to shareholders whose names are in the register of members as at the close of business on Thursday, March 28, 2024."

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According to the cement manufacturing financial statement for the year ending December 2023, it was stated that the firm's revenue increased by 8.6% to N405bn from the corresponding year, which finished with N373bn in 2022.

Lafarge's post-tax profit declined by 4.7% to N51.14bn, which was attributed to the devaluation of the naira.

Lafarge recorded a higher effective tax rate last year following the expiry of the Pioneer Status Incentive in 2022.

Discussing the results experienced, Lolo Alade-Akinyemi, the Chief Executive Officer of Lafarge Africa, said,

  • The fundamentals of our business remain strong. Despite extremely challenging macroeconomic headwinds, we grew the top line by 8.6% and improved the operating margin from 22.6% to 25.3% in FY 2023.

  • In the face of material FX devaluation losses and a higher effective tax rate, profit after tax declined YoY by 4.7%. Spalling inflation and unprecedented naira devaluation largely impacted our performance, with the attendant pressure on energy and supply chain costs.

  • Despite these challenges, we maintain a strong free cash flow position and a strong balance sheet, positioning us for sustainable growth over the medium to long term. We are committed to delivering sustainable value to all stakeholders in the coming years, as we have done historically. I want to thank all Lafarge Africa employees and stakeholders for their commitment.

  • The Nigerian infrastructure and construction sector is expected to grow despite inflationary pressure and currency depreciation affecting the economy.

  • As a result, we maintain our positive outlook, expecting increased demand in 2024 as the economy grows.

  • We will continue to maximise volume opportunities across our markets and manage our costs. The company remains committed to its sustainability ambitions and 'Accelerating Green Growth' strategy through innovative building solutions and delivering stakeholder value.

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The issued and fully paid-up Share Capital of the Company as of December 31, 2023, was 16,107,795,721 ordinary shares of 50 kobo each (December 31, 2022: 16,107,795,721 ordinary shares of 50 kobo each).

Associated International Cement Limited (AIC UK) and CariCement BV held over 5% of the company's issued share capital.

Holcim Limited is an international investor holding its shares in the names of its subsidiaries: AIC UK (27.77%) and CariCement BV (56.04%).

The total shareholding of Holcim Limited in the company was 83.81% as of December 31, 2023. While other individuals and institutions held 16.19% of the issued shares.

Lafarge Wapco's (WAPCO) share price is currently NGN 31.95. On Thursday, February 29, 2024, WAPCO closed trading at 31.95 NGN per share.

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