Lafarge Africa More Than Doubles Q1 Profit as Cash Holdings Reach ₦441 Billion

Lafarge Africa Plc has reported its first-quarter 2026 financial performance, posting a 101% surge in Profit After Tax (PAT) to ₦97.95 billion, up from ₦48.63 billion in Q1 2025.

The building materials giant also grew its cash reserves to a massive ₦441 billion, showcasing robust operational efficiency and volume-led revenue growth amid moderating macroeconomic pressures.

The cash hoard helped Lafarge Africa earn N12.14 billion as Interest income from short term fixed deposits and current accounts.

Q1 2026 Financial Performance: Key Metrics

The impressive bottom-line expansion was supported by strong sales growth and highly controlled production costs, allowing the firm to expand its margins significantly.

Source: MoneyCentral, Lafarge Africa

• Volume Growth & Efficiency: Net sales growth was supported by volume-led revenue expansion, better plant stability, and route-to-market optimization.

• Controlled Production Costs: Cost of sales rose by only 3.2% to ₦129.39 billion, well below the headline inflation rate. This efficiency helped almost double the operating profit to ₦141.26 billion.

Strong Liquidity and Margins

• Cash Reserves: The company’s cash and cash equivalents grew to ₦441 billion in Q1 2026, a 13.7% increase from the ₦388.06 billion recorded at the end of December 2025.

• Taxation: The effective tax rate increased slightly to 34.3% from 33.5% in the previous period, leading to a tax expense of ₦51.1 billion.

• Capital Discipline: Lafarge continues to implement tight cost optimizations to safeguard its margins against regional geopolitical tensions and global energy shocks.

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