Lafarge Africa Plc has released its unaudited result and accounts for half year (H1) ended June 30, 2025, showing significant increase in revenue that translated into an outstanding profit generation in the period under review. The cement manufacturing company declared N516.98 billion revenue in H1 2025, about 74.9 per cent increase over N295.6billion declared in H1 2024.

The growth in revenue was driven by strong growth across all business segments—cement (+70.4per cent y/y to N504.36 billion in H1 2025 | 97.4 per cent of revenue), aggregates & concrete (+63.7per cent y/y to N12.04 billion in H1 2025  | 2.5 per cent of revenue), and mortar and power (+90 per cent y/y  to N577.91 million in H1 2025| 0.1 per cent of revenue). 

The revenue performance in the period under review was driven by a combination of higher sales volumes, supported by improved plant stability, and upward price adjustment.  Analysts at InvestmentOne Research stated the stellar revenue performance was driven by volume expansion, following the introduction of Ground Calcium Carbonate (GCC) in Q1 2025 and the successful launch of ECOPlanet cement in the Western market in Q2 2025 complementing the earlier launch of the product in the Eastern market in 2024. 

“In addition, upward price adjustments and improved plant stability also contributed meaningfully to revenue expansion.The impressive performance largely mirrors Lafarge Plc’s dedication to value creation and its continuous rollout of innovative products. We still believe that the group remains well-positioned for continued growth underpinned on its enhanced operational efficiencies. 

“Additionally, the company’s deleveraging strategy, anticipated foreign exchange stability, and the prospect of monetary policy easing later in the year present supportive macro-economic tailwinds,” analysts at InvestmentOneResearch added.  

Lafarge Africa’s topline performance is rapidly converging with peers in terms of growth, despite its smaller production footprint. In 2024, the  company delivered revenue growth of 71.8 per cent y/y, reaching N696.76 billion, outperforming Dangote Cement (+62.2per cent y/y to N3.58 trillion) and trailing BUA Cement (+90.6per cent y/y to N876.47 billion), despite operating at a smaller capacity (10.50 metric tonnes per annum vs. Dangote Cement’s 52.00 metric tonnes per annum and BUA Cement’s 17.00 metric tonnes per annum). 

This momentum extended into Q1 2025, with Lafarge Africa posting 80.3per cent y/y growth in revenue to N248.35 billion, nearly matching BUA Cement’s 80.5per cent y/y to N290.82 billion and far ahead of Dangote Cement’s revenue growth of 21.7per cent to N994.66 billion. 

“Looking ahead, we forecast Lafarge Africa’s topline to grow by 40.7per cent y/y to N980.21 billion in 2025E, outpacing Dangote Cement’s 21.4per cent y/y to N4.35 trillion and slightly ahead of BUA Cement’s 40.6per cent to N1.23 trillion,” analysts at Cordros Research said. 

Construction sector Growth

The company in a statement noted that the Nigerian infrastructure and construction sector is projected to sustain its growth trajectory despite the challenges posed by macro-economic activities on purchasing power. 

“Consequently, we uphold a positive outlook for the latter part of 2025, anticipating that the market will maintain a growth rate consistent with the trend from the H1 2025. We will continue to capitalise on volume opportunities across our markets while diligently managing our costs. Our commitment to sustainability remains steadfast, as we pursue our strategy of ‘Accelerating Green Growth’ through innovative building solutions that enhance stakeholder value,” the company’s statement added.  

Lafarge Africa’s cost of production stood at N221.21billion in H1 2025 from N147.94 billion in H1 2024, driven by production variable costs of about N146.6 billion in H1 2025, 52.4 per cent increase from N96.19 billion in H1 2024, while production fixed costs moved from N20.8 billion in H1 2024, up by 76.2 per cent from N36.67 billion declared in H1 2025. 

The interplay between revenue and cost of production led gross profit to N295.77billion in H1 2025, representing an increase of 100.34 per cent from N147.64billion in H1 2024. 

Meanwhile, gross profit margin expanded significantly by 7.26 basis points to 57.2per cent from 49.9 per cent, reflecting the relatively slower growth in cost of sales ex-depreciation.

Operating expenses (OPEX) in the period under review stood at N108.14 billion in H1 2025, representing a 54 per cent increase from N70.41billion in H1 2024. 

The higher OPEX was stemmed from N77.41 billion distribution costs (diesel, gasoline, freight) in H1 2025, an increase of 44.3 per cent from N53.65 billion in H1 2024, while administrative expenses stood at N30.7 billion in H1 2025, about 83.4 per cent increase from N16.76billion in H1 2024. 

Nonetheless, OPEX-to-revenue ratio improved by 100 basis points to 20.92 per cent from 23.8 per cent in H1 2024, indicating enhanced operational efficiency. Lafarge Africa reported N192.27 billion operating income in H1 2025, about 144 per cent growth from N78.91 billion in H1 2024 to position operating margin at 37 per cent in H1 2025 from 27 per cent in H1 2024. 

Below the operating line, the company recorded net finance income of N7.47 billion, compared to a net finance cost of N32.28 billion in the corresponding period of 2024. Finance income, however, stood at N10.25billion in H1 2025, about 896 per cent increase from N1.03 billion in H1 2024.

Interest income from short term fixed deposits and current accounts of about N7.2 billion in H1 2025 from N629.01 million in H1 2024 and N3.07 billion foreign exchange gain contributed to the company’s finance cost in the period under review. 

For finance costs, the company declared N2.78billion in H1 2025 from N33.31billion in H1 2024- as the management cut down on letters of credit charges and other bank account operational charges.

Lafarge’s Profit Generation

As a result, profit before tax in H1 2025 stood at N199.74billion, about 328 per cent increase over N46.6 billion in H1 2024, while profit after tax grew significantly to N132.7billion in H1 2025, 352.05 per cent increase over N29.35billion declared in H1 2024. Lafarge Africa Plc had announced N100.15 billion profit after tax in 2024, about 96 per cent increase over N51.11 billion reported in 2023 financial year. 

The company in its profit & loss figures declared N152.52 billion profit before tax, representing an increase of 89 per cent from N80.7 billion declared in 2023 financial year.  

Amid growth in profit, the management of Lafarge Africa declared a final dividend of 120 kobo per unit (N19.3 billion) of 50 Kobo ordinary share when compared to N1.90 dividend pay-out in 2023 financial year.

Stronger balance sheet position

Lafarge Africa, as of June 30, 2025 closed with N1.03 trillion total assets, about 3.7 per cent increase over N990.51billion reported in 2024 full financial year. 

From the balance sheet position, the company declared N619.22 billion total non-current assets as of June 30, 2025, about 7.4 per cent increase over N576.51 billion in 2024, while current assets moved to N407.74billion as of June 30, 2025, a decline of 1.5 per cent from N414 billion in 2024FY.

On the other hand, total liabilities stood at N473.4billion as of June 30, 2025, about 2.6 per cent drop from N485.87 billion in 2024- as current liabilities contributed 83.2 per cent as of June 2025 from 84 per cent in 2024. 

The breakdown of total liabilities showed that current liabilities closed June 30, 2025 at N393.93 billion, a drop of 3.6 per cent from N408.85 billion reported in 2024, while non-current liabilities moved from N77.02 billion in 2024, to N79.47 billion as of June 30, 2025 (a growth of 3.2 per cent). 

Comments on H1 performance

The CEO of Lafarge Africa, Lolu Alade-Akinyemi in a statement said, “Following our impressive Q1 results, Q2 performance further showcases the strength of our team, market positioning, operational efficiency, cost management, and dedication to value creation. We achieved excellent financial results in Q2, with Net Sales growth of 70 per cent, Operating Profit up 153 per cent, and Profit after tax of N84billion, up 248 per cent vs prior year.  

“’With this strong Q2 result, we closed H1 with sales and operating profit growth of 75 per cent and 144 per cent respectively; driven by volume growth, operational excellence, innovative product offerings and our proactive market Initiatives.

“Looking ahead and mindful of the ever-evolving macroeconomic conditions, we are confident in our ability to continue to deliver value by focusing on our strategic priorities, while leveraging innovation and green growth, in line with our sustainability ambitions.

“I am deeply grateful to our exceptional team, valued customers, and loyal stakeholders for their unwavering contributions and support of Lafarge Africa. Despite the challenging macroeconomic environment, your commitment continues to inspire us and strengthen our confidence in the future.”

Impressive quarter

According to analysts at Cordros Research, Lafarge Africa delivered another impressive quarter in H1 2025, reinforcing the positive momentum established in the first quarter of 2025. 

While strong topline growth was largely anticipated, the material reduction in cost-to-sales ratio to 32.4 per cent from 44 per cent in Q2 2024 and 47.4 per cent in Q1 2025, was a notable highlight. With H1 2025 EPS of N8.24 already ahead of 2024’s N6.22, the outlook for 2025 is increasingly positive. 

We expect the company’s performance to remain resilient in H2-25, supported by continued demand from the construction and real estate sectors. Our estimates are under review.

Lafarge successfully launched ECOPlanet cement in the Western market in Q2, complementing the earlier launch of the product in the Eastern market in 2024 and driving our commitment to a greener planet. 

This product accounts for over 50 per cent of our sales in the West since its launch, and is expected to further reduce our carbon footprint. 

Lafarge Africa continues to drive the use of Calcined Clay, a low-carbon raw material, in its cement manufacturing process, to further drive the reduction of our CO2 emissions and carbon footprint.

Lafarge Africa had launched Ground Calcium Carbonate (GCC) in Q1. GCC can be used in multiple industries, such as the construction industry for filler in concrete, providing improved workability and stability, density, and compactability in asphalt mix. GCC also helps to reduce the carbon content in concrete solutions. The product has continued to gain further acceptance in the market in Q2.“This further demonstrates our innovation drive and greener planet ambition,” it said.

Lafarge’s Stock market rally 

The company stock price on NGX closed July 25, 2025 at N125.05 per share and it has appreciated by 78.8 per cent from N69.95 per share it closed for trading 2024. 

For much of the past two decades, WAPCO’s share price — despite bouts of appreciation — has remained below its 9th October 2014 all-time high of N127.00 per share, reflecting the overhang of legacy challenges that tempered investor confidence. 

The stock has quietly staged a remarkable rally, with its share price appreciating by 78.8per cent Year-till-Date (YtD), outperforming the NGX All-Share Index (ASI), which gained 30.63 per cent in the same period. 

 “While optimism surrounding the proposed Huaxinacquisition has played a role in the re-rating, the sustained price momentum suggests a broader market reassessment of Lafarge Africa’s fundamentals, including earnings recovery, operational efficiency, and balance sheet strength. Thus, after years of trading at a discount to intrinsic value, the market may finally be pricing in the turnaround,” added analysts at Cordros Research. 

QUOTE

“In addition, upward price adjustments and improved plant stability also contributed meaningfully to revenue expansion. The impressive performance largely mirrors Lafarge Plc’s dedication to value creation and its continuous rollout of innovative products. We still believe that the group remains well-positioned for continued growth underpinned on its enhanced operational efficiencies.”

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