Lafarge Africa Plc has reported an impressive financial scorecard for the nine months ended September 2025, characterized by robust revenue growth, a triple-digit rebound in profitability, and a significantly fortified balance sheet.
The cement manufacturer’s results reflect a successful convergence of higher sales volumes, strategic pricing, and disciplined cost management, positioning the company for sustained dominance in Nigeria’s construction and infrastructure sector.
The company saw its top-line revenue climb sharply by 62.77 per cent to N780.49 billion, up from N479.50 billion in the corresponding period of 2024.
This performance highlights Lafarge’s ability to navigate a volatile operating environment through strong market positioning. The core cement segment remained the primary engine of performance, generating N759.62 billion and accounting for 97.33 per cent of total revenue.
Simultaneously, the aggregates and concretes segment contributed N19.95 billion, bolstered by the commissioning of the Freedom ReadyMix plant in Lagos and the EcoCrete ReadyMix facility in Abuja, further validating the company’s product diversification strategy.
This revenue expansion translated directly into substantial profitability gains. Gross profit rose by 91.83 per cent to N456.12 billion, outpacing a 34.18 per cent increase in the cost of sales, a testament to effective production efficiency. Consequently, Profit Before Tax (PBT) surged by 232.12 per cent to N313.29 billion, while Profit After Tax (PAT) skyrocketed by 245.84 per cent to N207.78 billion. The bottom line was further supported by a 2,403.70 per cent spike in finance income to N20.28 billion, driven by foreign exchange gains and returns on investments, alongside an 85.23 per cent reduction in finance costs due to lower borrowing exposure.
Despite a 47.78 per cent rise in operating expenses to N162.50 billion driven by administrative costs and inflationary pressures the company successfully maintained positive operating leverage.
The growth in operating income significantly outweighed expense increments, ensuring sustained margin expansion.
Lafarge Africa’s financial position has expanded meaningfully, with total assets crossing the trillion-naira mark to stand at N1.03 trillion, representing a 26.70 per cent increase year-on-year.
Shareholders’ equity grew by 35.47 per cent to N629.29 billion, largely fueled by a 59.82 per cent rise in retained earnings to N440.22 billion. The company maintained a prudent capital structure with a low leverage profile, as loans and borrowings saw only a modest uptick to N1.72 billion.
Liquidity remains a key strength for the cement giant. Cash and cash equivalents rose by 135.63 per cent to N204.88 billion, providing a robust buffer to fund daily operations, absorb cost shocks, and finance capital expenditure without straining the balance sheet.
Commenting on the report, Lolu Alade-Akinyemi, CEO of Lafarge Africa, attributed the Q3 and nine-month performance to strict cost discipline and operational excellence.
He noted that net sales and operating profit for the nine-month period grew by 63 per cent and 129 per cent respectively, driven by volume growth and innovative product adoption.
He further highlighted the strategic advantage provided by the company’s strengthened partnership with Huaxin Cement Group, which has enhanced technical expertise and supply reliability.
Outlook
Looking ahead, Lafarge Africa maintains a positive outlook for the remainder of the year, expecting the building materials segment to sustain momentum amid ongoing infrastructure development. The company plans to deepen its sustainability commitments by scaling up its EcoCrete and Ecopanet solutions.
With strong cash flows, expanding margins, and a solid equity base, Lafarge Africa appears well-positioned to deliver long-term value to shareholders.
Best,
Mathew Ibiyemi
Nigerian NewsDirect