Lafarge Africa Plc, a foremost supplier of construction materials across Sub-Saharan Africa, reported a remarkable 246% surge in profit after tax, reaching N207.78 billion for the nine months ending September 30, 2025. This marks a substantial increase from the N60.08 billion recorded in the same timeframe of 2024, largely driven by strong cement sales performance.
The company’s unaudited financial results for the first three quarters of 2025 showed a 63% rise in revenue, climbing to N780.49 billion from N479.49 billion the previous year.
Cement sales remained the primary revenue contributor, generating N759.62 billion-a 63% increase compared to N466.27 billion in 2024. Sales from aggregates and concrete also grew, reaching N19.95 billion from N12.89 billion, while other product segments added N915.24 million.
In the earnings release, Lafarge Africa’s CEO, Lolu Alade-Akinyemi, emphasized, “Our performance in the first nine months of 2025 reflects exceptional resilience, with net sales and operating profit increasing by 63% and 129%, respectively. This achievement stems from steady volume expansion, operational excellence, innovative product offerings, and our agility in seizing market opportunities.”
He added, “Despite the unpredictable macroeconomic environment, we remain focused on our strategic priorities and flexibility, which we believe will empower us to capitalize on emerging prospects, sustain growth, and deliver long-term value.”
Operating profit soared by 129% to N298.41 billion, propelled by improved operational efficiencies, rigorous cost management, and expanded production capacity at Lafarge’s cement plants. Profit before tax surged to N313.29 billion from N94.33 billion the previous year, while basic earnings per share rose sharply to 1,290 kobo from 373 kobo, highlighting substantial shareholder value creation.
Despite headwinds such as inflationary pressures and fluctuating energy costs, Lafarge effectively controlled expenses. The cost of sales increased moderately by 34% to N324.36 billion, significantly lower than the 63% revenue growth, indicating enhanced production efficiency and economies of scale.
Administrative expenses climbed to N44.79 billion from N26.84 billion, mainly due to higher staff and technical service costs, while selling and distribution expenses rose to N117.24 billion.
Finance costs declined sharply to N5.40 billion from N36.56 billion, reflecting debt repayments and reduced foreign exchange risks. Conversely, finance income expanded markedly to N20.28 billion from N810.54 million, supported by interest income on short-term deposits and foreign exchange gains.
The company’s total assets increased to N1.03 trillion by September 2025, up from N810 billion a year earlier, driven by greater investments in property, plant, and equipment totaling N440.62 billion, alongside a stronger cash reserve.
Total equity rose to N629.2 billion from N345 billion, underpinned by a 40% increase in retained earnings to N440.2 billion. This growth underscores Lafarge Africa’s improved profitability and disciplined capital retention approach, despite distributing N83.13 billion in dividends earlier in the year.
Lafarge Africa sustained a robust liquidity position, with cash and cash equivalents closing at N204.88 billion compared to N235.23 billion at the start of the year. The slight reduction is attributed to higher capital expenditures and dividend payments.
Net cash flow from operating activities increased to N91.48 billion from N40.76 billion in 2024, demonstrating the company’s strong cash generation capacity. Investment activities recorded an outflow of N36.16 billion, primarily for plant upgrades and equipment purchases, while financing activities accounted for an outflow of N84.84 billion due to dividend distributions and loan repayments.