LafargeHolcim Maroc: Initial Synergies Boost Results

Following the merger-absorption of Holcim Maroc by Lafarge Ciments (completed in July 2016), LafargeHolcim Maroc has become an indisputable leader of the Moroccan cement sector with a total production capacity around 11.8 million tons.

LafargeHolcim Maroc is owned at 64.7% by Lafarge Maroc, which is itself owned at 50% by LafargeHolcim LTD and at 50% by the Societe Nationale d’Investissement (SNI), the investment vehicle of Morocco’s royal family.

The group reported full year pro-forma 2016 earnings. Pro-forma earnings correspond to the sum of 12 months of Lafarge Ciments performance and 12 months of Holcim Maroc performance.

At the top-line level, pro-forma consolidated revenue was stable and stood at MAD 8,244 million amid a weak cement market which slid by 70 basis points. In spite of the merger-related charges, pro-forma consolidated net income increased by 1.6% to MAD 2,065 million.

The earnings release highlighted that operational performance was improved thanks to synergies that have already materialized following the merger completed in July 2016.

Looking forward, Management anticipates the cement market to stabilize in 2017.In order to develop the group’s activity in the South, the group will launch a grinding station in Laayoune in 2017 while resuming work on the project to build a plant in Agadir. Furthermore, the group will also launch the first laboratory in Africa for the development of constructive solutions. This laboratory will be inaugurated in Casablanca in March 2017 and represents a major milestone for the group with regard to their commitment to sustainable development.

Other important developments mentioned in the release include the merger-absorption of Lafarge Cementos completed in December 2016; and the appointment of Mister Tarafa Marouane as the new chairman of the board of LafargeHolcim Maroc. Mister Tarafa replaces Mister Ahmed Nakkouche who resigned for personal reasons.

For the Shareholders’ Meeting, the Board of Directors will propose the distribution of a dividend of MAD 66 per share.

Source :Morocco World News