Lafarge Africa Plc has posted a pre-tax profit of N126.6 billion in the second quarter of 2025, marking an astonishing 233.9% jump from the N37.9 billion recorded during the same period in 2024.
The result signals a sustained earnings recovery and strong demand in the cement and construction market, as the company continues to benefit from robust sector-wide growth.
The impressive performance lifted Lafarge’s half-year profit to N199.7 billion—more than four times the N46.6 billion reported in the first half of 2024. This came as the company’s Q2 revenue surged 70.2% year-on-year to N268.6 billion, pushing total revenue for the first half of 2025 to N516.9 billion, up 74.9% compared to the same period last year.
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Cement sales remained the engine of growth, accounting for N261.6 billion in Q2 revenue. Lafarge also made N6.6 billion from aggregates and concrete, and N296.8 million from other products, highlighting the company’s diverse building solutions portfolio.
The booming results coincide with a broader rebound in Nigeria’s construction sector. According to the National Bureau of Statistics (NBS), the construction industry recorded a 6.21% growth rate in Q1 2025, buoyed by increased infrastructure investments and heightened activity in both private and public building projects. The construction sector was among the top contributors to Nigeria’s GDP growth, which the International Monetary Fund projects will hit 3.3% for 2025.
Despite higher production costs—up 26.4% to N95.8 billion—Lafarge managed to more than double its gross profit, which rose to N172.7 billion from N81.9 billion in Q2 2024. This was achieved even as the company faced significant operational expenses. Selling and distribution costs rose 45.8% to N20.9 billion, while administrative expenses more than doubled, climbing 109.8% to N31.1 billion. Yet, operating profit soared to N120.6 billion, up from N47.7 billion a year ago.
Finance income also saw a notable boost, rising by 212.4% to N7.3 billion. Most of it came from interest earned on short-term deposits and current accounts, totaling N5.3 billion, with foreign exchange gains contributing another N1.9 billion—reflecting prudent treasury management amid currency volatility.
On the balance sheet, Lafarge’s total assets climbed to N1.02 trillion, compared to N990.5 billion in the corresponding period last year. Retained earnings also grew 15.5% to N364.4 billion, underscoring the company’s strong earnings retention and financial stability.
As of market close on July 21, 2025, Lafarge Africa’s shares were trading at N116 per unit, reflecting a year-to-date gain of 66.3%—a strong return driven by investor confidence in its growth trajectory.
The company’s stellar showing comes as Nigeria pushes infrastructure development to counteract macroeconomic shocks. With cement as a central input in roads, bridges, housing, and industrial projects, Lafarge’s performance continues to track closely with the pace of construction spending.
Analysts say the firm is well-positioned to benefit from continued infrastructure outlays, especially as both federal and state governments ramp up capital projects amid efforts to stimulate job creation and economic growth. The federal government’s shift to cement use in road construction is expected to sustain the growth in the long term.