Lafarge Africa Plc, a Sub-Saharan Africa building solutions company, reported a 246 percent surge in profit after tax to N207.78 billion for the nine months ended September 30, 2025, compared to N60.08 billion in the same period last year, driven largely by strong cement sales.
According to the company’s unaudited financial statement for the nine months of 2025, revenue grew by 63 percent to N780.49 billion, up from N479.49 billion in the corresponding period of 2024.
Cement remained the dominant revenue contributor, accounting for N759.62 billion of total sales, a 63 percent jump from the N466.27 billion recorded a year earlier. Sales of aggregates and concrete also grew to N19.95 billion from N12.89 billion, while other product revenues reached N915.24 million.
Lolu Alade-Akinyemi, CEO of Lafarge Africa, said in the company’s earnings report that “We closed 9M 2025 with Net Sales and Operating Profit up 63 percent and 129 percent, respectively. Our 9M 2025 performance reaffirms our resilience, underpinned by sustained volume growth, operational excellence, innovative product offerings, and agile response to market opportunities.”
“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,” he added.
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Operating profit surged 129 percent to N298.41 billion, reflecting Lafarge’s improved operational efficiency, reduced production costs, and higher output across its cement plants. Profit before tax jumped to N313.29 billion compared to N94.33 billion in the same period last year, while the company’s basic earnings per share rose to 1,290 kobo from 373 kobo, underlining stronger shareholder value creation.
Lafarge managed to balance its cost structure despite inflationary pressures and energy price volatility. Cost of sales increased moderately by 34 percent to N324.36 billion, far below the 63 percent growth in revenue, underscoring better production efficiency and scale gains.
On the other hand, administrative expenses increased to N44.79 billion from N26.84 billion, primarily due to higher staff and technical service costs, while selling and distribution expenses rose to N117.24 billion.
Notably, finance costs decreased significantly to N5.40 billion from N36.56 billion in the prior year, following the repayment of borrowings and a reduction in exposure to foreign exchange losses. Conversely, finance income grew to N20.28 billion from N810.54 million, boosted by interest income on short-term deposits and exchange gains.
The company’s total assets rose to N1.03 trillion at the end of September 2025, from N810 billion in the same period last year, supported by increased investment in property, plant, and equipment (N440.62 billion) and stronger cash positions.
Total equity expanded to N629.2 billion from N345 billion, driven by retained earnings, which surged 40 percent to N440.2 billion. This demonstrates Lafarge Africa’s improved profitability and strong capital retention strategy, despite a dividend payout of N83.13 billion earlier in the year.
Lafarge Africa maintained a solid liquidity position, with cash and cash equivalents closing at N204.88 billion compared to N235.23 billion at the start of the year, a marginal decline attributed to higher capital expenditure and dividend payments.
Net cash generated from operating activities increased to N91.48 billion from N40.76 billion in 2024, highlighting the company’s strong cash-generating capacity. Investment activities saw an outflow of N36.16 billion, mainly for plant upgrades and equipment purchases, while financing activities consumed N84.84 billion due to dividend payments and loan settlements.