Lafarge Africa Plc is generating more revenue from its asset base than local rivals, underscoring a more efficient use of property, plant and equipment as the cement industry prepares for another wave of infrastructure-driven demand.
The company posted a fixed-asset turnover ratio of 0.93 in the first quarter (Q1) of 2026, meaning every naira of fixed assets generated 93 kobo of net sales. That compares with 0.31 for Dangote Cement Plc and 0.30 for BUA Cement Plc, according to MoneyCentral calculations.
Efficiency Edge
Fixed-asset turnover is a measure of how productively a company uses its physical assets to produce revenue. A higher reading suggests better utilization of kilns, plants and other equipment, while lower ratios can indicate idle capacity or heavier capital deployment relative to output.
Lafarge’s lead suggests it is squeezing more revenue out of existing assets than its peers, even as the sector remains capital intensive and vulnerable to demand cycles. Its 34.84% revenue growth in the quarter also outpaced Dangote Cement’s 20.44% and BUA Cement’s 22.06%.
Demand Tailwind
The backdrop remains favorable for the industry. Chapel Hill Denham said government capital spending continued to prioritize infrastructure in the 2025 budget, with N5.70 trillion earmarked for roads, housing and other projects, while per-capita cement consumption remains far below global averages.
Projects such as the Lagos-Calabar Coastal Highway, the AKK Gas Pipeline and housing rehabilitation schemes are helping support demand. That should encourage producers to keep investing, but Lafarge’s stronger asset productivity gives it a near-term operating advantage.
Sector Implication
The numbers point to a cement market where capacity expansion still matters, but execution matters more. Companies with better asset utilization and stronger pricing discipline are likely to convert infrastructure spending into faster sales growth and higher returns on capital.
Lafarge’s performance suggests it is currently winning that race.
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