Lafarge Africa reports 352% surge in half-year profit

Lafarge Africa recorded a 352 per cent leap in net profit in the first six months of the year, compared to a year ago.

The leap was helped by a building construction boom in Nigeria, where the cement industry has been projected to grow by 8.4 per cent in 2025.

Management attributed the sharp improvement in bottom line to relative stability of the naira during the period in contrast to last year, which was “heavily impacted by FX losses.”

Quarter on quarter, after-tax profit jumped 248 per cent to N84 billion, while revenue increased by 70 per cent to N268.6 billion, according to the newly released earnings report of the company.

“Following our impressive Q1 results, Q2 performance further showcases the strength of our team, market positioning, operational efficiency, cost management, and dedication to value creation,” CEO Lolu Alade-Akinyemi said in a separate statement.

“Looking ahead and mindful of the ever-evolving macroeconomic conditions, we are confident in our ability to continue to deliver value by focusing on our strategic priorities, while leveraging innovation and green growth, in line with our sustainability ambitions,” he added.

Turnover for the cement maker was up by 75 per cent at N517 billion, compared to the same period of last year, as improved plant stability boosted volumes.

Administrative expenses climbed to N30.7 billion from N16.8 billion, with technical service fees and office & general expenses as the main pressure points.

Lafarge Africa, which runs two subsidiaries – AshakaCem Limited and Wapsila Nigeria Limited – announced last December that its top shareholder Holcim had struck a deal to sell its entire 83.1 per cent stake to Chinese-based Huaxin Cement Limited.

Huaxin, which has been increasing its footprint in Africa having bought Brazil’s InterCement businesses in South Africa and Mozambique for $265 million in late 2023, agreed to acquire the majority interest for $1 billion.

The deal is yet to secure regulatory approvals.

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In the period under review, profit before tax jumped 328.3 per cent to N199.7 billion, while profit after tax increased to N132.7 billion from N29.4 billion.

Lafarge Africa announced an interim dividend of N4 per share in the first quarter of the year, following an 837 per cent surge in net profit, driving its share price to a 52-week high afterwards.

The stock has returned 222 per cent in the past one year.

In June, the company unveiled its ECOPlanet Elephant cement, a low-carbon multipurpose cement aimed at making construction activities more environmentally friendly.