{"id":7955,"date":"2016-07-20T15:30:51","date_gmt":"2016-07-20T14:30:51","guid":{"rendered":"http:\/\/nationalwire.com.ng\/?p=7955"},"modified":"2016-07-20T16:44:45","modified_gmt":"2016-07-20T15:44:45","slug":"q2lafarge-reports-a-pretax-loss-of-n28-0bn","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/","title":{"rendered":"Q2:Lafarge report\u2019s a pretax loss of N30.2billion"},"content":{"rendered":"

FRIDAY EKEOBA<\/p>\n

Lafarge Africa Plc, one of the leadingcement manufacturer in the\u00a0domestic economy has posted a material loss of N28.0billion in its\u00a0second quarter financial result for the year end June 2016, even as it\u00a0attributed the dip to foreign exchange losses that impacted negatively\u00a0on its operations to the tune of N27.5billion.<\/p>\n

In a filling to the Nigerian StockExchange on Wednesday for\u00a0verification, the cement giant said the company\u2019s pre-tax loss was\u00a0however narrowed by positive result of N5.1 billion in\u00a0other comprehensive income which reduces its losses to N24.3 billion.<\/p>\n

Expert at FBN Quest Research said the losses incurred by Lafarge Africa\u00a0will see to the likely downward revisions of the company\u2019s 2016 profit\u00a0before tax forecast.<\/p>\n

According to the company\u2019s filling and moving up its profit and loss\u00a0account, there was 30 per cent year-on-year reduction in sales to N54billion indicating a 2411 basis point contraction in gross margin to\u00a013.3 per cent, just as sales grew by 5 per cent.<\/p>\n

However, the pretax and after tax losses in Q2 are more significant\u00a0than the \u2013N2.2 billion and \u2013N6.4 billion that the company reported in\u00a0Q1 2016. The pretax loss reported in Q2 makes it the third consecutive\u00a0quarter of negative earnings for Lafarge.<\/p>

\r\n
Advertisement<\/div>\r\n\t\t\t\t\t\t\t<\/a>\r\n \r\n\t\t\t\t\t\t\t<\/div>\n

FBN Quest Research said when compared withits forecasts, sales for the\u00a0company missed by -22 per cent. \u201cWe had also expected\u00a0the company to\u00a0turn a profitin the quarter (prior to the profit warning which was\u00a0triggered by the naira devaluation)\u00a0compared with the pre-tax and\u00a0after-tax losses posted by the company.<\/p>\n

It would be recall that following the Central Bank Nigeria\u00a0(CBN) adoption of a more flexible exchange rate regime, and the naira\u2019s\u00a0downward move to c.N282.5 from N197 previously, Lafarge had issued a\u00a0profit warning which stated that it expected Q2 2016 earnings to be\u00a0materially impacted by a N28.0 billion unrealised foreign exchange\u00a0loss. The losses arise from forex denominated loans\u00a0consisting of\u00a0shareholder loans of US$310 million and external loans of US$85million. While Lafarge was able to refinance most of its naira debt via\u00a0its N60 billionbond issue, it has not been able to refinance the forex\u00a0component. Management also disclosed that it also brought in some forex\u00a0loans of UNICEM into the Lafarge books.<\/p>\n

Further in its forecast, FBN Quest Research said it estimate that\u00a0Lafarge has close to US$600 million in forex denominated loans and its\u00a0debt-to equity ratio is now up to around 1.6x from 0.9x previously.\u00a0\u201cExcluding the exchange rate loss, we note that core operations and\u00a0volume dispatches were also hampered by gas supply disruptions\u00a0following vandalism to gas supply infrastructure. The gas utilisation\u00a0for Ewekoro\u00a0II\u00a0dipped to as low as\u00a040 per cent from around 70 per cent\u00a0previously during the quarter. Barring operational issues and a further\u00a0sharp downward movement in the naira exchange rate, we expect H1\u00a0numbers to come in much better.<\/p>\n

\u201cConsensus 2016 PBT forecast for Lafarge Africa is N13.6 billion. Given\u00a0the weak set of results, we expect to see\u00a0a\u00a0marked reduction\u00a0to this\u00a0forecast. Lafarge shares have underperformed the ASI this year.\u00a0Year-to-date they\u00a0have shed -28.5 per cent compared with the -0.8 per\u00a0cent return delivered by the index.\u00a0Although the shares have been\u00a0relatively resilient since the profit warning was announced, we expect\u00a0them to come under more pressure over the coming days\/weeks\u201d, it added.<\/p>\n

The Chairman, Board of Directors, Lafarge Africa Plc, Mobolaji Balogun,\u00a0had revealed recently that the company plans to go beyond cement\u00a0production and marketing to building Nigeria and other geographies in
\nthe world.<\/p>\n","protected":false},"excerpt":{"rendered":"

FRIDAY EKEOBA Lafarge Africa Plc, one of the leadingcement manufacturer in the\u00a0domestic economy has posted a material loss of N28.0billion in its\u00a0second quarter financial result for the year end June 2016, even as it\u00a0attributed the dip to foreign exchange losses that impacted negatively\u00a0on its operations to the tune of N27.5billion. In a filling to the …<\/p>\n","protected":false},"author":11,"featured_media":7956,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23],"tags":[],"coauthors":[2392,2393],"class_list":["post-7955","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business"],"yoast_head":"\nQ2:Lafarge report\u2019s a pretax loss of N30.2billion - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Q2:Lafarge report\u2019s a pretax loss of N30.2billion - National Wire\" \/>\n<meta property=\"og:description\" content=\"FRIDAY EKEOBA Lafarge Africa Plc, one of the leadingcement manufacturer in the\u00a0domestic economy has posted a material loss of N28.0billion in its\u00a0second quarter financial result for the year end June 2016, even as it\u00a0attributed the dip to foreign exchange losses that impacted negatively\u00a0on its operations to the tune of N27.5billion. In a filling to the …\" \/>\n<meta property=\"og:url\" content=\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/\" \/>\n<meta property=\"og:site_name\" content=\"National Wire\" \/>\n<meta property=\"article:published_time\" content=\"2016-07-20T14:30:51+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2016-07-20T15:44:45+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2016\/07\/MOU-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"2230\" \/>\n\t<meta property=\"og:image:height\" content=\"1377\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dayo Emmanuel\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#website\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/\",\"name\":\"National Wire\",\"description\":\"About Nigerians, Nigerian Business and Other Stories\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/nationalwire.com.ng\/sub\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#primaryimage\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2016\/07\/MOU-1.jpg\",\"contentUrl\":\"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2016\/07\/MOU-1.jpg\",\"width\":2230,\"height\":1377,\"caption\":\"CONSULATE GENERAL OF THE FEDERAL REPUBLIC OF GERMANY, LAGOS, INGO HERBERT, DELEGATE, DELEGATION OF GERMAN INDUSTRY AND COMMERCE IN NIGERIA [DGIC], DR MARC LUCASSEN, PRESIDENT, LAGOS CHAMBER OF COMMERCE AND INDUSTRY [LCCI] DR MRS NIKE AKANDE, AND, DIRECTOR GENERAL LCCI, MUDA YUSUF, DURING THE SIGNING OF MEMORANDUM OF UNDERSTANDING BETWEEN THE DGIC AND THE LCCI ON A PARTNERSHIP ON FOSTERING AND INCREASING NIGERIAN-GERMAN BUSINESS RELATIONS, IN LAGOS, ON WEDNESDAY.\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#webpage\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/\",\"name\":\"Q2:Lafarge report\u2019s a pretax loss of N30.2billion - National Wire\",\"isPartOf\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#primaryimage\"},\"datePublished\":\"2016-07-20T14:30:51+00:00\",\"dateModified\":\"2016-07-20T15:44:45+00:00\",\"author\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/806673c5851717dc3067b1a46a6c060f\"},\"breadcrumb\":{\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/nationalwire.com.ng\/sub\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Q2:Lafarge report\u2019s a pretax loss of N30.2billion\"}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/806673c5851717dc3067b1a46a6c060f\",\"name\":\"Dayo Emmanuel\",\"url\":\"https:\/\/nationalwire.com.ng\/sub\/author\/dayo\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Q2:Lafarge report\u2019s a pretax loss of N30.2billion - National Wire","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/","og_locale":"en_US","og_type":"article","og_title":"Q2:Lafarge report\u2019s a pretax loss of N30.2billion - National Wire","og_description":"FRIDAY EKEOBA Lafarge Africa Plc, one of the leadingcement manufacturer in the\u00a0domestic economy has posted a material loss of N28.0billion in its\u00a0second quarter financial result for the year end June 2016, even as it\u00a0attributed the dip to foreign exchange losses that impacted negatively\u00a0on its operations to the tune of N27.5billion. In a filling to the …","og_url":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/","og_site_name":"National Wire","article_published_time":"2016-07-20T14:30:51+00:00","article_modified_time":"2016-07-20T15:44:45+00:00","og_image":[{"width":2230,"height":1377,"url":"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2016\/07\/MOU-1.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_misc":{"Written by":"Dayo Emmanuel","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/nationalwire.com.ng\/sub\/#website","url":"https:\/\/nationalwire.com.ng\/sub\/","name":"National Wire","description":"About Nigerians, Nigerian Business and Other Stories","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/nationalwire.com.ng\/sub\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#primaryimage","url":"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2016\/07\/MOU-1.jpg","contentUrl":"https:\/\/nationalwire.com.ng\/sub\/wp-content\/uploads\/2016\/07\/MOU-1.jpg","width":2230,"height":1377,"caption":"CONSULATE GENERAL OF THE FEDERAL REPUBLIC OF GERMANY, LAGOS, INGO HERBERT, DELEGATE, DELEGATION OF GERMAN INDUSTRY AND COMMERCE IN NIGERIA [DGIC], DR MARC LUCASSEN, PRESIDENT, LAGOS CHAMBER OF COMMERCE AND INDUSTRY [LCCI] DR MRS NIKE AKANDE, AND, DIRECTOR GENERAL LCCI, MUDA YUSUF, DURING THE SIGNING OF MEMORANDUM OF UNDERSTANDING BETWEEN THE DGIC AND THE LCCI ON A PARTNERSHIP ON FOSTERING AND INCREASING NIGERIAN-GERMAN BUSINESS RELATIONS, IN LAGOS, ON WEDNESDAY."},{"@type":"WebPage","@id":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#webpage","url":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/","name":"Q2:Lafarge report\u2019s a pretax loss of N30.2billion - National Wire","isPartOf":{"@id":"https:\/\/nationalwire.com.ng\/sub\/#website"},"primaryImageOfPage":{"@id":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#primaryimage"},"datePublished":"2016-07-20T14:30:51+00:00","dateModified":"2016-07-20T15:44:45+00:00","author":{"@id":"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/806673c5851717dc3067b1a46a6c060f"},"breadcrumb":{"@id":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/nationalwire.com.ng\/sub\/q2lafarge-reports-a-pretax-loss-of-n28-0bn\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/nationalwire.com.ng\/sub\/"},{"@type":"ListItem","position":2,"name":"Q2:Lafarge report\u2019s a pretax loss of N30.2billion"}]},{"@type":"Person","@id":"https:\/\/nationalwire.com.ng\/sub\/#\/schema\/person\/806673c5851717dc3067b1a46a6c060f","name":"Dayo Emmanuel","url":"https:\/\/nationalwire.com.ng\/sub\/author\/dayo\/"}]}},"_links":{"self":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts\/7955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/comments?post=7955"}],"version-history":[{"count":2,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts\/7955\/revisions"}],"predecessor-version":[{"id":7959,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/posts\/7955\/revisions\/7959"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/media\/7956"}],"wp:attachment":[{"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/media?parent=7955"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/categories?post=7955"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/tags?post=7955"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/nationalwire.com.ng\/sub\/wp-json\/wp\/v2\/coauthors?post=7955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}