LafargeHolcim Maroc: Initial Synergies Boost Results.

Casablanca - 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...