LafargeHolcim sees improving profit margins at its Africa unit this year as Nigerian and South African economies pick up and the company invests the proceeds of a R4.4 billion rights issue.
The earnings before interest, taxes, depreciation and amortization margin will rise above 35%, Lagos, Nigeria-based Lafarge Africa said in a statement Monday. The company is working to reduce energy and transportation costs as part of a turnaround plan, according to Chief Executive Officer Michel Puchercos.
LafargeHolcim, the Jona, Switzerland-based market leader in cement, is expanding in Africa to take advantage of economic growth and a boom in infrastructure projects across the continent. Earlier Monday, Lafarge Africa said 2017 sales rose 36% to R10 billion and EBITDA almost doubled. The company sees demand for cement improving in Nigeria along with the economy, while in South Africa it’s focusing on cost controls.
As a result of the rights issue, LafargeHolcim increased its stake in Lafarge Africa to 76% from 71%.
- Moneyweb
