*Firm approves N15.6 billion dividend payout
*Mobolaji balogun steps in as new chairman

Chief Olusegun Osunkeye, chairman for the past 14 years of the board of directors of Lafarge WAPCO, has stepped down.

His retirement was one of the highlights of the company’s 56th AGM in Lagos, where the shareholders also approved a dividend payout of N15.6 billion.

Mr. Mobolaji Balogun, the Chairman Deham Securities Ltd Lagos, has replaced Osunkeye as chairman.

The dividend payout translated to N3.60 per share compared with N3.30 declared in the corresponding period of 2013 or a growth of nine per cent.

Mr Sunny Nwosu, the National Coordinator, Independent Shareholders Association of Nigeria (ISAN), lauded the company for the dividend declared in spite of challenging operating environment. He said the company should consider a bonus issue in the current year to compensate shareholders for their support in the past years, adding that the company offered bonus last about 12 years ago.

He also called on the company’s incoming chairman to pursue strategies that would move its operations to the next level.

Osunkeye, commended the shareholders for supporting its expansion plans.

According to him, arrangements are in top gear to increase production lines capacity of the company to ensure availability of its products across the country.

Osunkeye said that the medium to long-term outlook remained positive for Lafarge South Africa Holding (LSAH).

“The recent strengthening of Rand versus the Naira will increase the value of the South African profits to the group, and it is a testament to the advantages of having added Lafarge South Africa to the group,” he said.

According to him, the creation of Lafarge Africa has transformed the company into a group equipped to accelerate and withstand challenges in the African market.

He said the company’s production capacity grew from 4.5 million tonnes to about 12 million tons during the period under review.

Osunkeye said 3.5 million cubic meters of ReadyMix concretes and over 5 million tonnes of aggregates were added to the company’s portfolio.

“All of this is about building on the foundation which was laid over the last few years and the transformation into Lafarge Africa Plc is a natural progression to take our company to the next level,” he said.

He, however, attributed the high price of the company’s cement to poor power supply in the country which also contributed to high cost of production.

Osunkeye said:“We are looking at a way to reduce cost and increase our sales.”

Also speaking, Mr Guillaume Roux, the company’s Group Managing Director and CEO, attributed the good performance to management’s commitment to corporate governance, innovation, customer service and cost efficiency.

Roux assured the shareholders of continuous and enhanced dividend in the years ahead.

The company posted a turnover of N205.8 billion in 2014 against the N206 billion achieved in 2013.

Profit before tax stood at N41.1billion compared with N64.2 billion in 2013, while profit after tax declined to N34.3 billion against N60.3 billion in 2013.