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The Managing Director / Chief Executive Officer of Lafarge Africa Plc Michel Puchercos has assured stakeholders in the capital market that the building solution company is committed to high corporate governance standard and growth that will deliver good returns to investors. He disclosed this after the company was officially admitted into the Premium Board of the Nigerian Stock Exchange (NSE).
Lafarge Africa shareholders are expected to approve a dividend of N1.50 kobo per share totaling N13 billion for the full year ended December 31, 2017, which represent a 43 percent increase growth relative to the corporate action that was paid in 2016. According to Bruno Bayet, Chief Financial Officer, the dividend will be paid from the company 2012/2013 pioneer profit reserve.
Details of the dividend shows that register of members will close on April 23, 2018, payment date is May 16, 2018, same day the company scheduled its 2017 Annual General Meeting in Lagos. Commenting on the company 2017 financial performance, Michel Puchercos attributed the strong margin in the Nigerian business to cost initiatives and more favourable pricing.Puchercos stated that Lafarge Africa industrial operations in 2017 were stable with plants operating at high reliability levels.
He also noted that the energy optimization plan for the company has been successful with increased use of Alternative Fuel and Coal to offset gas shortages in operations in the West while plant operations in the eastern and northern part of the country relied mainly on gas and coal. He said these logistic, commercial and operational initiatives helped to sustain market share in the year under review.
Adding that the expected recovery in the macroeconomic environment in Nigeria is likely to have a positive impact in the overall cement market in Nigeria. “Our Business turnaround actions will be consolidated further in 2018 through energy optimisation as well as commercial and logistic improvement. “In 2018 we shall implement a continuous improvement programme that will see us building on EBITDA margins above the 35 percent benchmark,”
He explained that the capital expenditure expectation for Nigeria will be mainly devoted to Energy and Production Optimisation. For South Africa the economy is expected to grow by 3 percent in 2018. The turnaround plan of the South African operations is focused on cost containment, commercial transformation and industrial stabilsation. The overall goal is to create value for shareholders through an attractive growth profile and good margins.
Lafarge Africa successfully raised N131 billion by way of Rights Issue, the largest Rights Issue by size raised in Nigeria so far. Minority participation was in the 50s, while LafargeHolcim subscribed to the un-allotted portion. This brings the ownership of Lafarge Holcim to 76.32 percent from 71.35 percent prior to the Rights Issue. A latest review of the shareholding structure of Lafarge Africa indicated that LafargeHolcim took advantage of the recent rights issue by Lafarge Africa to increase its majority stake by 4.97 percentage points from pre-rights issue position of 71.35 per cent to 76.32 per cent after the rights issue.
Photo Caption: Managing Director / Chief Executive Officer of Lafarge Africa Plc Michel Puchercos
