Lafarge Africa Plc said it expects its installed capacity to rise to 14.1 million metric tons per annum with the completion of 2.5mm tons plant lines in one of its subsidiaries, United Cement Company of Nigeria, Unicem, Limited.
Lafarge Africa owns 50 per cent equity stake in Unicem and plans further acquisition of additional 50 per cent interest before the end of the year to bring its shareholding in the company to 100 per cent. The company also declared N13.66 billion dividends, which translates to 300kobo per share and bonus issue of one new share for every 10 previously held by shareholders for the year ended December 31, 2015.
Addressing shareholders at the 54thAnnual General Meeting, AGM, in Lagos, the chairman, Mr. Mobolaji Balogun, told shareholders that 2.5Mtpa cement capacity expansion work in the Mfamosing plant at Unicem is on-going and would be commissioned later this year. He stated that the capacity expansion in Unicem in addition to other acquisitions it made within the year, particularly acquisition of 82.5 per cent stake in Ashaka Cement Plc, would positively impact its top-line and bottom-line, thereby resulting in increased value for shareholders.
“When completed, this will increase the total cement production capacity of Unicem to 5Mtpa and 14.1Mtpa for Lafarge Africa. This strategically located investment will increase our share of the growing cement market in the South East and South South regions in Nigeria.
“This transaction will be value accretive to the shareholders of Lafarge Africa. In addition to other synergies from full ownership of the company, the transaction will enable the debt refinancing of Unicem via Lafarge Africa and improve the corporate organisational structure,” he said.
He explained that as part of cost saving measures, the group’s operations in Nigeria as Wapco, AshakaCem and Unicem are organised along one country organisation with functional lines to remove role duplication and ensure that synergies from the consolidation of the group’s entities are realised. Balogun noted that the action is expected to deliver significant cost savings which will have a positive impact on the financial results in the near term.
He stated that the revenue grew by 2.5 per cent to N267.23 billion in 2015, while pre-tax profit and post tax profit fell to N29.3 billion and N26.99 billion. “In the final quarter of 2015, the unplanned stoppages at the Unicem and Ewekoro plants affected our ability to produce and satisfy market’s demands, which in turn reversed turnover gains in the first quarter of the year.
