Lafarge Africa plans new capital injection to increase profitability

Lafarge Africa Plc announces a new issue of rights worth up to 90 billion naira, or $ 250 million, as part of its efforts to reduce the company’s debt and strengthen its profitability.
The group implemented reforms to improve operational efficiency in both Nigeria and South Africa, as well as the efficient management of its borrowing costs that impacted its performance.
In Nigeria, Lafarge Africa’s operations posted a profit of $ 5.3 million in the second quarter of 2018, thanks in particular to the turnaround plan and the improvement in volume. Strong growth reflecting the end of the recession in the cement market.
“Our company has experienced strong market growth in Nigeria, reflecting the end of the recession in the cement market. The demand for cement has been rising since the beginning of 2018, “notes Michel Puchercos, Lafarge Africa CEO.
In South Africa, the group’s revenues increased by 7.7% due to higher prices in all segments. However, Lafarge notes the absence of major infrastructure projects that affect volumes in its operations in South Africa and announces a recovery plan that should improve its operations.