HBM Nigeria, formerly Lafarge Africa, has disclosed that it will pay an interim dividend of N16 per share to its shareholders after reporting a 57 percent rise in its profit after tax for the period ended June 30, 2026.
According to the corporate disclosure released by the firm on Tuesday, an interim dividend of N16 per unit of ordinary share, subject to deduction of withholding tax, will be paid to shareholders whose names appear in the Register of Members as at the close of business on Wednesday, August 12th, 2026.
The interim dividend of N16 per ordinary share, amounting to about N257.7 billion based on the company’s 16.11 billion outstanding shares, represents one of the largest interim shareholder payouts by a Nigerian manufacturing company.
The cement maker posted a profit after tax of N208.35 billion for the six months ended June 30, 2026, compared with N132.68 billion in the corresponding period of 2025. Earnings per share increased to N12.93 from N8.24 a year earlier.
Revenue for the period rose 31.2 percent to N678.41 billion from N516.98 billion in the first half of 2025, supported primarily by cement sales, which contributed N661.54 billion, while aggregates and concrete generated N16.23 billion.
The stronger top-line performance translated into improved profitability. Gross profit climbed 42.6 percent to N421.82 billion, lifting the gross margin to about 62.2 percent, compared with 57.2 percent in the corresponding period last year.
Operating profit increased by 51.3 percent to N290.94 billion from N192.27 billion, despite higher operating expenses.
Selling and distribution costs rose 10.5 percent to N85.57 billion, while administrative expenses expanded 47.9 percent to N45.45 billion, reflecting higher personnel expenses, office costs, and technical service fees.
A key contributor to earnings growth came below the operating line. Finance income nearly tripled to N27.95 billion from N10.25 billion, driven largely by higher interest earned on short-term fixed deposits and current accounts, which surged to N27.01 billion from N7.18 billion. Finance costs, meanwhile, declined to N1.16 billion from N2.78 billion, further supporting profit growth.
Profit before tax consequently advanced 59.1 percent to N317.73 billion, while income tax expense increased to N109.38 billion, reflecting the higher earnings base and an effective tax rate of 34.4 percent.
HBM Nigeria continued to strengthen its balance sheet during the period. Total equity rose to N805.70 billion at the end of June from N694 billion at the beginning of the year, driven by retained earnings, while total assets increased to N1.31 trillion from N1.21 trillion.
The company maintained a substantial liquidity position despite significant capital spending and shareholder returns.
Cash and cash equivalents stood at N330.64 billion at the end of June, while the company invested N141.47 billion in property, plant, and equipment during the six-month period as it continued expanding production assets.
Operating cash flow also improved significantly. Net cash generated from operating activities rose to N149.05 billion, compared with N82.58 billion in the corresponding period of 2025, providing support for both capital expenditure and dividend payments.
The current share price of HBM Nigeria is N389.9 as of Tuesday, gaining over 171 percent year-to-date from N134.5 reported at the beginning of the year.
The interim results represent the company’s first half-year performance following its rebranding from Lafarge Africa Plc to HBM Nigeria Plc in May 2026, after the completion of the acquisition by Huaxin Cement. The company said it continues to operate through its subsidiaries, AshakaCem Limited and Wapsila Nigeria Limited.