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Cement maker Lafarge Africa reported a surge of 172.7 per cent in net profit on Thursday, which took its earnings to the highest on record, as volume growth lifted top line.
The company, whose products also comprise aggregate and concrete, said improvement in bottom line derived in part from factors ranging from higher plant stability and enhanced distribution efficiency to cost optimisation.
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A buoyant construction climate in Nigeria, where a large-scale housing and infrastructure deficit continues to feed demand for building materials, including cement, provided the backdrop for a leap in revenue by more than half to N1.1 trillion.
Lafarge, now controlled by Huaxin Building Materials Group after Swiss-based Holcim gave up its 83.8 per cent shareholding last year, is advancing an expansion ambition under its new majority owner.
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This month, the manufacturer declared an aspiration to beef up production capacity at its Ashaka Cement and Sagamu Cement plants to 2 mtpa and 3.5 mtpa. Lafarge expects to hit a combined capacity of 14 mtpa on completion of the projects.
Profit was further bolstered by a jump in finance income to N30.2 billion from N2.7 billion, following an improvement in interest income on current accounts. Similarly, finance costs decreased by 74.5 per cent or N32.1 billion, strengthening profit.
Profit before tax went up by 170.1 per cent to N411.3 billion, while profit after tax climbed to N273.1 billion from N100.1 billion a year earlier.
READ ASO: Lafarge Africa’s planned 5 mt capacity upgrade lifts shares for first time in days
“Full Year 2025 results are a testament of the effectiveness of our 4-point strategy, disciplined execution, and relentless focus on value creation,” CEO Lolu Alade-Akinyemi said in a statement.
“With a 103 per cent surge in operating profit to N392 billion and margins widening to 37 per cent, we have demonstrated exceptional operating excellence,” the managing director added.
Also on Tuesday, Lafarge announced a final dividend of N6 per share, translating to a potential payout of N96.6 billion. That compares to the N1.20 per share paid for the 2024 financial year.
Last February, the firm declared an interim dividend of N4 per share.
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