Lafarge Africa: Significant Increase in Revenue Pushes Profit Upward

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July 28, 2025
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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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August 25, 2025
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Atiku Abubakar: ADC Leading Potent Coalition, Will Shock the World in 2027

*’We will upstage the status quo in a way that will leave doubters dumbstruck’*Insists he will contest presidential election

*Disowns statement insinuating he may not run
*Says there’s nationwide degeneration, unprecedented thievery under current administration

Emmanuel Addeh in Abuja

Former Vice President Atiku Abubakar yesterday vowed that despite efforts by the ruling All Progressives Congress (APC) to ridicule and play down the current momentum in the African Democratic Congress (ADC), the coalition will shock the world in the 2027 presidential election.
Atiku also laid to rest insinuation that he might not contest the presidential poll two years from now, stressing that he will run for the nation’s top job in the next election cycle.
One of the politician’s spokespersons during the 2023 presidential election, Tunde Olusunle, disclosed this to THISDAY last night, quoting his ex-principal as maintaining that Nigeria needs to be decisively rescued from the ‘intensive care’ unit it has been consigned to under the Bola Tinubu government.
Atiku, until recently a prominent figure in the Peoples Democratic Party (PDP), has often sought broad coalitions to strengthen his presidential bids. In that light, the ADC, a hitherto relatively smaller party has brought together some heavyweight politicians, positioning itself as a third-force alternative outside the dominance of the APC and PDP.
Besides, the former Nigeria’s number two man decried what he described as the unprecedented ‘thievery’ in the current administration, highlighting the need to ‘rescue’ the country from its current leaders.
He pointed out that the ADC will mobilise Nigerians to upstage the status quo in 2027, emphasising that he will be offering himself for election.
“The accompanying deceit, the loss of values, the mega-scale, unimpeded thievery and the absolute lack of accountability must disturb every concerned patriot. I will be offering myself to lead the reclamation and reconstruction of our traumatised homeland,” Olusunle quoted Atiku as having said, after conferring with him.
Atiku explained that the coalition which he is leading under the ADC is to galvanise popular support for the liberation of Nigeria, but said that a platform which was adopted just a few months ago cannot be expected to engender upsets in by-elections that just held.
“ADC is leading a potent mass movement which will shock the world. We will upstage the status quo in a way which will leave doubters dumbstruck,” he maintained.
In the same vein, contrary to recent reports to the effect that he may opt out of the 2027 presidential contest, the former Vice President Atiku restated that he will run for the nation’s top job.
However, apart from Atiku, ex-Anambra Governor, Peter Obi, and former Rivers Governor, Rotimi Amaechi, have made public their intentions to jostle for the ADC’s presidential ticket as part of a coalition of opposition figures seeking to challenge President Bola Tinubu at the polls in 2027.
While the former vice president has positioned himself as the most experienced hand, Obi, the 2023 presidential candidate of the Labour Party (LP), has insisted he will not play a secondary role to anyone. Also, Amaechi, a former Minister Of Transportation, has hinted on plans to throw his hat into the ring.
But Atiku was quoted to have said at the weekend that his commitment to the evolution of a better Nigeria far outweighed his quest to be President. Prof Ola Olateju of the Achievers University, Owo, Ondo state, who represented him at the defection of several top political figures to ADC in Lagos, suggested that Atiku was not enamoured about occupying Aso Rock at all costs.
“Atiku Abubakar’s plan is to build a better Nigeria, it’s not about being President. It’s about establishing a government that works for Nigerians. That’s why some of us are with him, not because Atiku must be President at all costs,” Olateju was widely reported to have said at the event he stood in for Atiku.
But Olusunle stated that after reading the report from his holiday home in the United Arab Emirates, (UAE), Atiku disowned the statement, insisting that the message conveyed during the event was not sanctioned by him.
“I did not issue that statement,” he said. “When people stand in for me at events, we preview my thoughts on the instant subject and what my contribution or intervention will be, so we are on the same page. In this particular instance, there was no engagement with me to distill my thoughts. Prof Olateju was not speaking for me,” he stated.
The elder statesman added: “I will run in 2027. Nigeria needs to be decisively rescued from the intensive care unit it has been consigned. The degeneration in our country, the level of poverty and pain, the anguish, is unacceptable.”
Atiku’s statement is also coming as the presidency has often seized every opportunity to ridicule the ADC, claiming that the coalition only exists on paper and portraying it as inconsequential as well as lacking real electoral weight.

The post Atiku Abubakar: ADC Leading Potent Coalition, Will Shock the World in 2027 appeared first on THISDAYLIVE.

*’We will upstage the status quo in a way that will leave doubters dumbstruck’*Insists he will contest presidential election *Disowns statement insinuating he may not run*Says there’s nationwide degeneration, unprecedented
The post Atiku Abubakar: ADC Leading Potent Coalition, Will Shock the World in 2027 appeared first on THISDAYLIVE.

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FAAC Reconciliation: NNPC, FIRS, Others Remit N1.49 Trillion Arrears to Federation in Six Months

*No agreement on $78.2m, N6.7tn outstanding payments yet

Emmanuel Addeh in Abuja

Nigeria’s Federation Account received a major inflow of N1.49 trillion in the first half of 2025 from arrears reconciled and paid by the country’s revenue generating agencies, fresh data from the Federation Accounts Allocation Committee (FAAC) has shown.
A report by the FAAC Post-Mortem Sub-Committee (PMSC), which reviews remittances from key agencies, indicated that the cumulative inflows into the Federation Account between January and June 2025 came from reconciled outstanding arrears previously owed by key agencies.
These included: The Nigerian National Petroleum Company Limited (NNPC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), and other statutory bodies.
According to the report seen by THISDAY, the total arrears inflows amounted to exactly N1,490,778,578,480.61 over the six-month period, averaging over N248 billion monthly and providing additional fiscal space for the government at a time of government’s mounting debt service obligations.
The figures released showed that in January 2025, reconciled arrears worth N367.37 billion were remitted to the Federation Account, the highest single-month inflow during the period. This was followed by N227.15 billion in February and N175.99 billion in March. In April, arrears payment rose to N259.85 billion, before dropping to N247.05 billion in May and N213.37 billion in June.
Specifically for June 2025, FAAC recorded a reconciled arrears payment of $41.07 million, equivalent to N213.37 billion at the official Central Bank exchange rate of N1528.705 as well as local currency reconciliation of N150.589 billion.
This payment included $5.19 million (N7.92 billion) from the FIRS in respect of Petroleum Profit Tax value arrears; $35.43 million (N54.15 billion) from NUPRC’s royalty value arrears, and $459,226 (N702.9 million) from NNPC joint venture outstanding royalty. The N150.59 billion came from NUPRC on other royalty receipts.
But while the N1.49 trillion inflows were welcomed as a boost to the Federation Account, the FAAC report warned that much larger sums remained outstanding.
At the inter-agency reconciliation meeting held in August 2025, additional outstanding amounts undergoing reconciliation were put at $78.23 million and another N1.72 trillion from FIRS/NNPC and another N2.32 trillion, to hit 6.75 trillion.
The bulk of this figure was attributed to the NNPC, which accounted for $11.24 million and N164.7billion, and NUPRC/NNPC jointly, which made up $66.99 million.
In the same vein, FIRS/NNPC reconciliation added N1.72 trillion, while other government agencies owed N2.03 trillion, to hit $78.2 million and N6.7 trillion, which had yet to be reconciled.
Beyond these, arrears of about N2.54 trillion from before June 2023 are still unresolved, the document showed. These older payments have now been referred to the Stakeholders Alignment Committee and the FAAC Sub-Committee for further reconciliation.
“Members should note that the above outstanding amounts are still being reconciled at the monthly reconciliation meetings between the agencies and the Sub-Committee.
“Furthermore, the sum of N2,535,352,533,190.87 outstanding payments from the revenue generating agencies before June, 2023, were referred to the Stakeholders Alignment Committee and the sub-committee awaits the outcome of the technical reconciliation meeting conveyed by the Ministry of Finance. All outstanding between January 2023 and December 2024 was taken to the Alignment Committee,” the report reiterated.
The reconciliation exercise is part of government efforts to improve accountability in the management of public finances and close loopholes in remittances by revenue generating agencies.
For years, FAAC allocations to the federal, state, and local governments have been undermined by remittances underpayments, with NNPC especially frequently accused by states and civil society groups of withholding funds or making delayed remittances.
In the past, FAAC meetings have ended in deadlock over disagreements about what NNPC declares as gross revenue and the deductions it made for subsidy, pipeline repairs, and joint venture obligations before passing the balance to the Federation Account.

The issue worsened in 2022 and 2023, when huge amounts were carried as unremitted arrears. The ongoing reconciliation exercise seeks to address those backlogs, ensuring that revenues due to the Federation are captured and distributed among the three tiers of government.

The post FAAC Reconciliation: NNPC, FIRS, Others Remit N1.49 Trillion Arrears to Federation in Six Months appeared first on THISDAYLIVE.

*No agreement on $78.2m, N6.7tn outstanding payments yet Emmanuel Addeh in Abuja Nigeria’s Federation Account received a major inflow of N1.49 trillion in the first half of 2025 from arrears
The post FAAC Reconciliation: NNPC, FIRS, Others Remit N1.49 Trillion Arrears to Federation in Six Months appeared first on THISDAYLIVE.

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