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Lafarge Africa Plc cement market share by capacity has fallen to 14%, compared to the historical average of 18%, due to substantial investments in new capacity by key competitors, BUA Cement and Dangote.
Nevertheless, Lafarge’s strategic emphasis on unlocking capacity through debottlenecking its plants and upgrading infrastructure, are expected to increase operating efficiency and boost market share.
During 2024, Lafarge Holcim Group (Lafargeholcim) sold a controlling stake to Huaxin Cement Ltd (Huaxin).
The transaction did not have a financial impact on Lafarge Africa and operations have not been impacted by the change in ownership.
However, a Nigerian minority shareholder, Strategic Consultancy, is in a legal dispute with Lafarge Africa and Huaxin Cement over the sale of Holcim’s controlling stake in Lafarge Africa to Huaxin Cement in December 2024.
Holcim divested its 83.81% stake in Lafarge Africa to Huaxin Cement for $1 billion.
Strategic Consultancy alleges that the sale was conducted in secrecy, violating Nigerian laws and denying local shareholders their right of first refusal.
As per Nigerian regulations, Huaxin is obliged to launch a mandatory takeover offer for the remaining minority shares at a capped price of ₦93 per share. Lafarge Africa closed trading at N126 per Share on Monday.
The court has ordered all parties to maintain the status quo while an appeal challenging a ruling on jurisdiction proceeds in the Court of Appeal.
A court date for the continued hearing in Lagos is set for October 9, 2025.
Lafarge Africa’s revenue increased 71.5% to a high of N696 billion (USD471 million) in 2024, following slower growth in 2023.
The strong performance was driven by higher industry-wide cement prices and an uptick in traded volumes.
EBITDA also improved to 40% in H1 2025, compared to the five-year average of 30%, supported by cost-saving initiatives including enhanced logistics, energy efficiencies and an improved ability to pass through cost increases.
With annualized revenue increasing 49% in H1 2025 on the back of sustained strong public sector demand and elevated prices, analysts expect the seasonally stronger second half to support full year revenue above N1 trillion.
Gross debt amounted to N2.2 billion in 2024 and N1.7 billion at H1 2025 (2023: NGN26.2 billion), comprising largely of lease liabilities. This compared to cash holdings of N210 billion as at 30 June 2025.
Free cash flow has been driven by robust cash generation, with operating cash flow coverage of gross debt consistently exceeding 200%, despite increased working capital absorption.
Lafarge Africa Plc business profile is underpinned by sizable installed production capacity, high utilization rates relative to peers, a broad customer base and strong footprint in Southwestern Nigeria.
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