Lafarge Africa Plc has posted one of the strongest earnings performances in Nigeria’s industrial sector in recent years, reporting ₦1.066 trillion in revenue and ₦273.12 billion in profit after tax for the year ended 31 December 2025.
The results mark a decisive rebound from 2024, when the company recorded ₦696.76 billion in revenue and ₦100.15 billion in profit. Profit after tax rose by approximately 173% year-on-year, underscoring the scale of the earnings expansion.
Revenue Breaks the ₦1 Trillion Threshold
Crossing the ₦1 trillion revenue threshold is strategically significant. It positions Lafarge Africa firmly within Nigeria’s top-tier industrial corporates and reflects:
• Strong pricing discipline amid inflationary pressures
• Volume resilience in a high-cost operating environment
• Operational efficiency across cement, concrete and aggregates
Revenue increased by over 53% year-on-year, from ₦696.76 billion to ₦1.066 trillion.
Operating Leverage in Action
Operating profit rose to ₦392.10 billion in 2025, compared to ₦193.01 billion in 2024.
This near-doubling reflects margin expansion driven by:
• Improved cost absorption
• Reduced finance costs
• Enhanced operational efficiency
Notably, net finance costs swung from a negative ₦40.49 billion in 2024 to a positive ₦19.22 billion in 2025, materially strengthening bottom-line performance.
Earnings Per Share Soars to 1,696 Kobo
Basic earnings per share rose to 1,696 kobo, compared to 622 kobo in 2024.
This has direct implications for shareholder returns and valuation metrics, particularly in a Nigerian equities market where investors are increasingly discriminating between narrative and earnings-backed growth.
Dividend Raised 5x to 600 Kobo
The Board has proposed a gross dividend of 600 kobo per share, up from 120 kobo in 2024
The proposed payout amounts to ₦96.65 billion, a substantial capital return reflecting strong cash generation and balance sheet strength.
For context, dividends declared in 2024 totalled ₦30.60 billion. The scale-up signals management confidence in sustainability of earnings.
Balance Sheet Strengthens
Total equity rose from ₦504.64 billion in 2024 to ₦693.99 billion in 2025.
Cash and cash equivalents increased significantly to ₦384.97 billion at year-end, compared with ₦235.23 billion in 2024
The company generated ₦292.63 billion in net operating cash flow during the yearsupporting both capital expenditure and dividends without balance sheet strain.
Ownership Structure Post-Holcim Exit
Following Holcim’s divestment, Huaxin Building Materials Group Co., Ltd now holds 83.81% of Lafarge Africa through its subsidiaries.
This consolidation of ownership may have implications for strategic direction, capital allocation and long-term industrial positioning in Nigeria.
The Macroeconomic Context
Lafarge Africa’s standout financial performance unfolded in a macroeconomic environment that was stabilising after years of significant volatility. Headline inflation in Nigeria eased meaningfully through 2025, with official data showing a decline to around 15.15% by December 2025 — the lowest in several years — after a prolonged disinflationary trend. This reflected both base effects and tighter monetary policy that had been sustained through much of the year.
Monetary policy also shifted in response to easing price pressures. In the latter half of 2025, the Central Bank of Nigeria cut its key policy rate — the first reduction in several years — as inflation moderated, indicating increased confidence in stabilisation of the macroeconomic cycle.
Foreign exchange conditions likewise showed improved stability relative to earlier periods of sharp volatility. Reforms to redenominate FX windows and rebuild reserves contributed to narrower spreads between official and parallel market rates, supporting corporate planning and reducing currency-related operating losses.
Against this backdrop, Lafarge Africa’s ability to expand revenue past the ₦1 trillion milestone, deliver robust margins, and raise dividends underscores both operational discipline and the resilience of domestic cement demand. Construction activity — underpinned by public capital projects and private sector real estate — remained an important driver of volume growth.
A more stable inflation and FX environment, combined with gradually supportive interest rate conditions, enhanced business confidence and lowered some input cost uncertainties for industrial players. As macro indicators continue to normalise, well-capitalised manufacturers such as Lafarge Africa may be structurally positioned to capitalise on Nigeria’s broader economic recovery trajectory.
