Lafarge Africa has sustained its impressive performance as the producer of the building material revenue crossed the N1 trillion mark, underscoring operational resilience and benign macroeconomic conditions.
For the year ended December 2025, Lafarge Africa’s profit after tax (PAT) surged by 172.73 percent to N273.12 billion, supported by cost savings and favorable weather that helped accelerate construction activities.
Revenue spiked by 52.13 percent to N1.06 trillion in the period under review, just little lower than analysts at Chapel Hill Denham N1.10 trillion forecast. The growth in the top line (revenue) was supported by increase in sales volume, enhanced factory reliability, and innovative offering.
The outlook for Lafarge Africa is propitious as aggressive government infrastructure spending is expected to speed up the demand for cement, leading to further growth volume.
Little wonder the company shares have gained 53.90 percent since the start of the year, outperforming the NGXASI index 2491 percent.
Key Performance indicators
- Operating profit margin or (EBIT) margin rose to 36.78 percent in December 2025 from 27.70 percent the previous year, thanks to the relative stability in the foreign exchange market which helped reduce cost.
- Net profit margin increased to 25.61 percent in December 2025 from 14.63 percent as at December 2024.
- Lafarge Africa is spending less to produce each unit of products as the cost of sales improved to 42.10 percent from 50.23 percent the previous year.
- Sustained balance sheet strength: Lafarge Africa generated cash from operating activities of N303.11 billion as at December 2025, which is 37.89 percent higher than 2024’s N219.81 billion.
The company has zero debts in its balance sheet, which makes it impervious to bankruptcy and financial risk.
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