Lafarge Africa Reports Record Annual Profit Driven by Volume Expansion

Lafarge Africa, a prominent cement manufacturer, reported an impressive rise of 172.7% in its net profit on Thursday, achieving a record high in earnings, driven primarily by increased sales volumes.

The company, which also produces aggregates and concrete, indicated that the enhancement in its profit was influenced by several factors, including improved plant stability, better distribution efficiencies, and effective cost management.

The flourishing construction sector in Nigeria, marked by a persistent shortage in housing and infrastructure, has significantly bolstered demand for building materials like cement. This favorable environment has led to a revenue surge of over 50%, reaching N1.1 trillion.

Lafarge, which is now under the ownership of Huaxin Building Materials Group following the divestment of an 83.8% stake by Swiss-based Holcim last year, is pursuing an ambitious expansion strategy under its new majority stakeholder.

Recently, the company unveiled plans to enhance production capacity at its Ashaka Cement and Sagamu Cement facilities to 2 million tons per annum (mtpa) and 3.5 mtpa, respectively, with an aim to achieve a total capacity of 14 mtpa upon completion of these projects.

Financial gains were further complemented by a boost in finance income, which surged to N30.2 billion from N2.7 billion, thanks to an enhancement in interest income on current accounts. Concurrently, finance costs dropped by 74.5%, amounting to N32.1 billion, thereby reinforcing the company's profit margins.

Profit before tax increased by 170.1% to N411.3 billion, while profit after tax escalated to N273.1 billion, up from N100.1 billion recorded the previous year.

Lolu Alade-Akinyemi, CEO of Lafarge, remarked, "The full-year results for 2025 highlight the efficiency of our four-point strategy along with our commitment to disciplined execution and relentless value creation."

He also noted, "With a remarkable 103% increase in operating profit to N392 billion and an expansion of margins to 37%, we have exhibited exceptional operational proficiency."

Additionally, Lafarge declared a final dividend of N6 per share this month, translating to a total potential payout of N96.6 billion, in contrast to the N1.20 per share distributed for the 2024 fiscal year. The company had declared an interim dividend of N4 per share in February of last year.