By Kingsley Ani
Lafarge Africa Plc has reported record financial results for the year ended December 31, 2025, exceeding the N1 trillion revenue mark for the first time in its history.
In a statement signed by Ginikanwa Frank-Durugbor, Head of Corporate Communications, the company disclosed that revenue rose by 53 percent from N696.8 billion in 2024 to N1.1 trillion in 2025. Profit before tax increased by 170 percent to N411.3 billion, while profit after tax grew by 173 percent to N273 billion from N100.1 billion in the previous year.
DECISION HIGHLIGHT
Management attributed the performance to execution discipline and operational efficiency under its four-point strategy.
Lolu Alade-Akinyemi, Chief Executive Officer of Lafarge Africa Plc, stated: “Our Full Year 2025 results are a testament of the effectiveness of our 4-point strategy, disciplined execution and relentless focus on value creation. Reaching the N1 trillion Net Sales threshold, a 53% year-on-year increase, marks a historic turning point for our Company.”
The company also confirmed planned capacity expansion at its Ashakacem plant in Gombe State and Sagamu plant in Ogun State following the majority acquisition by Huaxin Building Materials Group. Upon completion, total installed capacity is projected to reach 14.0 million metric tonnes annually.
DECISION MEMO
Lafarge Africa Plc’s 2025 results indicate significant year-on-year growth across revenue and profitability metrics, supported by volume expansion and cost optimisation initiatives cited by management.
The divergence between revenue growth of 53 percent and profit after tax growth of 173 percent reflects substantial margin expansion during the period. The company linked this outcome to operational improvements.
Alade-Akinyemi said: “With a 103% surge in Operating Profit to N392 billion, we have demonstrated exceptional operating excellence. This 173% growth in Profit After Tax is the direct result of our focus on plant reliability, operational efficiency, and commitment to shareholder value.”
The announced capacity expansion to 14.0 million metric tonnes signals forward production scaling supported by Huaxin Building Materials Group’s majority ownership and technical collaboration. Management indicated this positioning is intended to support future growth.
Lolu Alade-Akinyemi added: “Looking forward, with Huaxin’s collaboration and industrial expertise, we are excited about the year 2026 and the opportunities ahead. Our resilience, operational scale, and strategic clarity provide a strong foundation for sustainable growth and enhanced shareholder value.”
The company also reiterated its sustainability positioning. According to the Chief Executive Officer: “Lafarge Africa Plc will continue to explore the volume opportunities in our markets, while sustaining prudent cost optimisation. Our sustainability-driven growth model remains at the core of our long-term value creation strategy.”
In addition, the Board of Directors proposed a final dividend of 600 kobo per share, compared with 120 kobo in the prior year, reflecting improved earnings and cash position.
DATA BOX
Revenue 2025: N1.1 trillion
Revenue 2024: N696.8 billion
Revenue growth: 53 percent
Profit before tax 2025: N411.3 billion
Profit before tax growth: 170 percent
Profit after tax 2025: N273 billion
Profit after tax 2024: N100.1 billion
Profit after tax growth: 173 percent
Operating profit: N392 billion, up 103 percent
Proposed dividend: 600 kobo per share
Prior dividend: 120 kobo per share
Planned capacity: 14.0 million metric tonnes annually
WHO WINS / WHO LOSES
Who wins:
Shareholders through higher earnings and proposed dividend increase.
Huaxin Building Materials Group through expanded exposure to the Nigerian cement market.
Distribution and construction value chains supported by increased production capacity.
Who loses:
Market participants unable to match cost efficiencies at scale.
Cement buyers if industry pricing conditions remain elevated relative to income growth.
POLICY SIGNALS
The results highlight continued scale expansion within Nigeria’s cement manufacturing sector and ongoing investment in domestic production capacity.
The company’s reference to a “green growth” model indicates alignment with emerging sustainability expectations in heavy industry.
INVESTOR SIGNAL
The earnings trajectory and dividend proposal indicate strengthened cash generation and profitability for the 2025 financial year.
Investor focus will likely remain on volume sustainability, margin performance and the execution of planned capacity expansions.
RISK RADAR
Key sensitivities include construction demand trends, energy cost volatility, foreign exchange exposure and execution risk associated with plant expansion projects.
Future performance will depend on market demand conditions, cost management discipline and capacity utilisation levels.
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