Ashaka Cement, a unit of French Cement maker Lafarge, has posted a record H1 profit after tax of N3.51 billion ($25.14 million) in the first half of 2014, 201.41 percent higher than N1.15 billion ($7 million) it recorded in the corresponding period of 2013.
The manufacturing company enjoyed a pre-tax profit surge of 166.16 percent, from N1.65 billion ($10.1 million) in the first of half of 2013 to N4.39 billion ($26.9 million) in 2014. Earnings per share (EPS) tripled to N1.57k from 52k in HY 2013 as net margin, the measure of profitability and efficiency, spiked to 28.33 percent in 2014, from 9 percent in 2013.
The astronomical growth is in part thanks to the company’s switch to coal from the Maiganga Coal Mine in Gombe State for the generation of electricity, which for production, has been a cheaper alternative. This led to reduction in production costs as cost-of-sales margin dipped to 58.13 percent in 2014, from 80 percent in 2013, while cost of sales also fell by 22.44 percent to N6.71 billion ($41.1 million).
This is as Ashakacem, based in northern Nigeria, plans an aggressive expansion across the country, having secured a N50 billion credit facility. N100 billion is also earmarked for projects like capacity expansion and coal-fire captive power plant, which should be completed within two years, the company said in April.
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