Home NewsBusiness News Lafarge Africa Reports 8.64% Revenue Growth in FY 2023

Lafarge Africa Reports 8.64% Revenue Growth in FY 2023

by Harry Choms
Lafarge Africa plc

Lafarge Africa Plc, a prominent player in the industrial goods sector, has disclosed an impressive 8.6% increase in revenue for its Financial Year 2023 Results.

The company’s revenue surged to N405.5 billion in 2023, significantly from the N373.2 billion recorded in 2022.

Operating profit witnessed a commendable growth of 21.18% year-on-year, reaching N102.0 billion compared to N84.2 billion in 2022. However, there was a notable 62.56% increase in finance costs.

Lafarge Africa also reported a 5.35% year-on-year increase in gross profit, climbing to N206.7 billion in 2023 from N196.2 billion in 2022.

Despite the positive trends in operating and gross profit, the company faced challenges, including a higher effective tax rate in 2023 following the expiry of the pioneer status incentive in 2022. Additionally, pressures from foreign exchange losses contributed to a 4.7% year-on-year decline in profit after tax, amounting to N51.1 billion in 2023 compared to N53.6 billion in 2022.

Commenting on the results, Lafarge Africa CEO, Lolu Alade-Akinyemi, emphasized the company’s resilience amidst challenging macroeconomic conditions. Despite facing headwinds such as soaring inflation and naira devaluation, the company demonstrated robust fundamentals, evident in the 8.6% revenue growth and improved operating margin, which increased from 22.6% to 25.3% in FY 2023.

Alade-Akinyemi acknowledged the impact of inflation and naira devaluation on energy and supply chain costs, influencing the company’s performance. However, he expressed confidence in the company’s ability to navigate these challenges and maintain its strong position in the market.

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