Lafarge Africa Reports 233.9% Surge in Q2 Profit as H1 Earnings Hit N199.7 Billion

Lafarge Africa Plc has announced a 233.9 percent increase in its profit before tax for the second quarter of 2025, reaching ₦126.6 billion, up from ₦37.9 billion in the same period last year. The company’s unaudited financial results released on Monday showed that its half-year profit before tax rose to ₦199.7 billion, a sharp increase from ₦46.6 billion recorded in the corresponding period of 2024. Profit after tax also climbed by 352 percent year-on-year to ₦132.68 billion, compared to ₦29.35 billion in the first half of the previous year. Lafarge attributed the remarkable growth to increased cement demand, operational efficiency, and effective cost management. Revenue for the second quarter stood at ₦268.6 billion, representing a 70.2 percent rise compared to the previous year. Of this amount, cement sales accounted for ₦261.6 billion, while aggregates and concrete contributed ₦6.6 billion. Total revenue for the first half of 2025 reached ₦516.9 billion, reflecting a 74.9 percent increase year-on-year. The company’s operating profit in Q2 rose by 153 percent to ₦120.6 billion, up from ₦47.7 billion in the same quarter of 2024. Gross profit increased by 113.6 percent to ₦172.7 billion, while net finance income rose by 212 percent, supported by foreign exchange gains and reduced borrowing costs. Group Managing Director and CEO, Lolu Alade-Akinyemi, said the strong performance was driven by improved plant efficiency, volume growth, and a stable business environment. He added that Lafarge’s strategic focus on sustainability, innovation, and cost discipline under its “Accelerating Green Growth” agenda continued to yield positive results. Cost of sales for the quarter rose by 26.4 percent to ₦95.8 billion. Selling and distribution expenses increased by 45.8 percent, while administrative expenses grew by 109.8 percent. Despite these increases, Lafarge maintained strong profit margins due to higher sales and effective cost control. Alade-Akinyemi expressed confidence in the company’s outlook for the second half of the year, citing continued infrastructure investments and rising private sector construction activities as key drivers of future growth. The board of Lafarge Africa is yet to announce an interim dividend, but the company’s robust financial performance suggests a strong return outlook for shareholders.