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Lafarge Africa Plc reported record revenue and profit, driven by improved volumes, and sustained construction activities as the stellar performance means the cement maker is poised to pay out a bumper dividend to shareholders.
For the first six months through September 2025, Lafarge Africa achieved record revenue of N780.48 billion, a 62.77 percent year-over-year (Yoy) increase from 2024’s N479.49 billion.
Profit after tax (PAT) surged by 245.89 percent to N207.78 billion in September 2025 from N60.07 billion.
The producer of the building material does not have foreign exchange revaluation loss in its books, thanks to a hedging strategy that makes it impervious to currency risk.
Despite the high interest environment, finance costs were down 85.25 percent to N5.39 billion as at September 2025 from N36.56 billion the previous year.
Earnings, before, interest and tax (EBIT) spiked by 129.41 percent to N298.40 billion in the period under review from N130.07 billion the previous year.
Earnings before interest and tax (EBIT) margin increased to 38.23 percent in September 2025 from 27.12 percent the previous year.
Of course, the margin expansion is largely driven by foreign exchange stability and cost efficiency as the company is ingenious enough to switch to alternative energy to overcome a challenging business environment. It had moved from Low-Pour-Fuel to gas and cheaper coal to power plants at the factory.
For instance, cost of sales ratio reduced to 41.55 percent in the period under review from 50.41 percent the previous year.
Lafarge Africa is a lowly geared company with a healthy balance sheet as well as stable short term liquidity that gives it the leeway to meet its financial obligations as at when due.
The cement maker remains committed to broadening its low-carbon product portfolio, strengthening customer partnerships, advancing sustainability, and industry-leading health & safety culture.
The company is efficient in the use of its fixed assets in generating higher revenue as the fixed asset turnover ratio rose to 1.83 in September 2025 from 1.27 the previous year. A FAT ratio of 1.83 implies that each dollar of fixed assets owned results in N1.83 of revenue.
“Building on the performance from previous quarters, Q3 results showcase our cost discipline, strategic market positioning, unwavering commitment to value creation, and strong operational efficiency – demonstrated by a +7% YoY improvement in capacity utilization. Our 9M 2025 performance reaffirms our resilience, underpinned by sustained volume growth, operational excellence, innovative product offerings, and agile response to market opportunities,” said Lolu Alade-Akinyemi, CEO of Lafarge Africa.
“As we look forward, we remain attentive to the dynamic macroeconomic environment, and we are confident that our resilience and strategic focus position us to seize emerging opportunities, drive sustainable growth, and deliver lasting value,” said Akinyemi.
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