(Updates with analyst’s comment in third paragraph.)
Oct. 26 (Bloomberg) -- Lafarge Cement WAPCO Nigeria Plc, a unit of Lafarge SA, posted a 2.8 percent increase in nine-month net income to 5.8 billion naira ($36 million) as revenue climbed, it said in a statement e-mailed by the Nigerian Stock Exchange today.
Revenue rose 35 percent to 44.6 billion naira, from 33 billion naira over the same period a year earlier, according to the statement.
The growth outpaced expectations of a net loss in the period at Vetiva Capital Management, said Oluwakemi Oluwakiyesi, a Lagos-based analyst with the brokerage, in a note to clients today.
“The expected improvement in operating efficiency, especially from the commencement of operation at the new Lakatabu plant, was underestimated,” she said in the note. Lafarge Wapco may “surpass” a full-year pre-tax profit estimate of 9.8 billion naira, Oluwakiyesi said.
Lafarge Wapco’s 45 billion-naira plant began production of the building material last month. It will expand annual output to 4.5 million metric tons, Managing Director Samy Abdelkader said Sept. 21.
Vetiva retained its “buy” rating on Lafarge Wapco, while reviewing its valuation of the stock, Oluwakiyesi said. The stock rose 0.6 percent to 39.25 naira by the 2:30 p.m. close in Lagos.
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