The cost-reduction strategy of Lafarge Africa has started yielding results as it achieved over 87 per cent reduction in its debt portfolio, from N288.9billion to N37.1 billio, just as it is proposing N1 payout as dividend for its shareholders.
According to its Group Chief Executive Officer, Khaled El Dokani, who stated this in a release made available to the media, the company’s “turnaround and cost-reduction strategy in 2019 financial year and the divestment of the South African business have delivered strong results.”
“The decrease in net debt has significantly strengthened our balance sheet and has placed us in a vantage position to face the future,” he added.
The company explained that the success of its 2018/2019 rights issue also contributed to its strong net income improvement in the 2019 fiscal year.
The company raked in over N89 billion from the rights issue which opened on December 17, 2018 and closed on January 28, 2019.
As for its outlook for the year, the company stated:
“As the Coronavirus (COVID-19) pandemic now impacts Nigeria, Lafarge Africa has taken the necessary measures to protect the health of its employees, customers, suppliers and other stakeholders. “The construction sector and construction sites are generally more resilient than other sectors and Lafarge Africa has a strengthened balance sheet and is well equipped to weather the storm.