Lafarge Africa Plc.

Lagos, April 29, 2024

Q1 2024 NET SALES UP 50% YOY; PAT DOWN 65% YOY, IMPACTED BY FX DEVALUATION LOSSES

  • Q1 2024 Net Sales up 50% YoY with improved sales volume
  • Operating Profit up 36% YoY driven by improvement in net sales
  • Profit After Tax down 65% YoY, impacted majorly by Foreign Exchange losses in the quarter.
  • Continued focus on Product Solutions, Innovation, Operational Excellence, Health and Safety and Decarbonisation

PERFORMANCE OVERVIEW

Q1 2024 Financial Highlights

Q1 2024

Q1 2023

Var. (±%)

Net Sales (N'mn)

137,772

91,821

50.0%

Operating Profit (N'mn)

30,240

22,239

36.0%

Operating Margin (%)

21.9%

24.2%

Profit Before Tax (N'mn)

8,709

22,481

-61.3%

Profit After Tax (N'mn)

5,193

14,935

-65.2%

Lolu Alade-Akinyemi, CEO of Lafarge Africa, commented, "We experienced a growth in cement sales as market recovered in the quarter. However, foreign exchange losses due to further Naira devaluation in the quarter, resulted in a PAT decline of 65%.

In spite of the challenging macroeconomic environment, we continue to focus on delivering sustainable value for all our stakeholders, positioning us for sustainable growth over the medium to long term.

I would like to thank all employees and stakeholders of Lafarge Africa for their commitment despite the macroeconomic headwinds being experienced in the industry."

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BUSINESS UPDATE

PRODUCT LAUNCH: Lafarge Africa unveiled an innovative product poised to redefine industry standards, offering a solution previously unseen in construction materials. Lafarge Watershield Cement prevents water from permeating into buildings, thus ensuring the durability of the structure. This can be used for new structures and for remedial works where rust marks or seepage is evident on the building.

This new product is damp resistant, limits salts efflorescence, corrosion resistant and maintains concrete breathability without requiring costly solutions like wall tiles.

OPERATIONAL EXCELLENCE: Lafarge commissioned the Evacuation Road in Calabar. The event was attended by notable dignitaries including the State Governor, Local Council Chairman, prominent community leaders and top Lafarge Africa executives, marking a significant milestone in the Company's dedication to sustainable development.

The Evacuation Road, spanning 20 kilometres, is the culmination of years of meticulous planning, dedication and collaboration between Lafarge Africa and its stakeholders. The new road which replaces the outdated and unsafe equipment road will significantly improve transportation efficiency and safety.

OUTLOOK

The outlook for the Nigerian Infrastructure and Construction Sector remains positive despite inflationary pressure affecting the economy. As a result, we expect increased demand in the remaining quarters of 2024 as the economy picks up and a further strengthening of the currency. We will continue to maximize volume opportunities across our markets and actively manage our costs. The Company remains committed to its sustainability ambitions and strategy of 'Accelerating Green Growth' through innovative building solutions and delivering stakeholder value.

-END-

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Lafarge Africa Plc, a leading Sub-Saharan Africa building solutions company is a member of Holcim Limited, a world leader in building solutions accelerating our world's green transformation. Listed on the Nigerian Exchange Group, Lafarge Africa is actively participating in the urbanization and economic growth of Nigeria, the largest economy in Africa.

Lafarge Africa has the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State) with Ready-Mix operations in Lagos, Abuja and Port Harcourt. Lafarge Africa has a current installed cement production capacity of 10.5Mtpa.

Lafarge Africa leverages on its innovative expertise to provide value-added products and services solutions in the building and construction industry in Nigeria. Additional information is available on the web site atwww.lafarge.com.ng

About Holcim

Holcim is a global leader in innovative and sustainable building solutions. Driven by its purpose to build progress for people and the planet, its 63,448 employees are on a mission to decarbonize building, while improving living standards for all. The company empowers its customers across all regions to build better with less, with its broad range of low-carbon and circular solutions, from ECOPact to ECOPlanet. With its innovative systems, from Elevate's roofing to PRB's insulation, Holcim makes buildings more sustainable in use, driving energy efficiency and green retrofitting. With sustainability at the core of its strategy, Holcim is becoming a net-zero company with 1.5°C targets validated by the Science Based Targets initiative (SBTi).

Learn more about Holcim on www.holcim.com

Contact:

Adewunmi Alode

General Counsel & Company Secretary

adewunmi.alode@lafarge.com

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Disclaimer

Lafarge Africa plc published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 15:51:39 UTC.