In its recently released audited FY 2021 results, Lafarge reported a 27.1% y/y increase in Revenue to N293.1bn from N230.6bn in FY 2020. On a q/q basis, Revenue was down marginally by 0.4% to N73.9bn in Q4 2021 from N74.2bn in Q3 2021. The broad-based growth in Cement Sales (up 26.1% y/y to N285.1bn), sale of Aggregates & Concrete (up 77.7% y/y to N7.6bn) and Others (up 231.1% y/y to N0.3bn) drove the improved topline performance in FY 2021. While no information has been provided on the Revenue breakdown, we believe, just as in the previous quarters of the year, that both growth in price and volume supported the Revenue growth, with the former being stronger than the latter. The persistent inflationary pressures presented opportunity for the company to implement higher prices as of 9M 2021 to neutralize the cost impact.
