Lafarge Africa Plc delivered one of its strongest earnings performances in recent history, posting a 352% surge in after-tax profit for the first half of 2025, even as Nigeria’s construction sector grapples with inflation and weak public spending.
The cement and building solutions giant reported a profit after tax of ₦133 billion, up from ₦29.4 billion a year earlier. Net sales rose 75% to ₦517 billion, while operating profit climbed 144% to ₦193 billion, according to its financial statement released Monday.
The result signals strong private-sector demand in Nigeria’s construction market and improved cost discipline amid macroeconomic headwinds.
“Following our impressive Q1 results, Q2 performance further showcases the strength of our team, market positioning, operational efficiency, cost management, and dedication to value creation,” said CEO Lolu Alade-Akinyemi.
“With this strong Q2 result, we closed H1 with sales and operating profit growth of 75% and 144% respectively—driven by volume growth, operational excellence, innovative product offerings and our proactive market initiatives.”
The earnings come as Nigeria battles economic turbulence. While official data show inflation easing slightly and the exchange rate stabilizing, the impact of twin economic reforms – fuel subsidy removal and naira devaluation – has plunged many citizens into the worst cost-of-living crisis in a generation, with little disposable income for building projects.
Yet, Lafarge’s Q2 results show resilience. Net sales between April and June jumped 70%, while operating profit soared 153% year-on-year, buoyed by higher volumes and improved pricing.
Margins also improved: EBITDA margin rose to 35.9% in Q2, from 27.5% a year earlier, reflecting gains in cost efficiency despite ongoing pressure from fuel and foreign exchange volatility.
Green growth
With 10.5 metric tonnes per annum (Mtpa) of installed cement capacity and operations in Ogun, Gombe, and Cross River States, Lafarge said it will continue to lean on green growth and innovation. Its parent company, Holcim, is a global leader in sustainable building materials.
“Looking ahead and mindful of the ever-evolving macroeconomic conditions, we are confident in our ability to continue to deliver value by focusing on our strategic priorities, while leveraging innovation and green growth, in line with our sustainability ambitions,” Alade-Akinyemi said.
Lafarge Africa is publicly listed and majority-owned by Holcim AG, which is in the process of selling its 83.8% stake to China’s Huaxin Cement Co. for $1 billion. The transaction, expected to close in 2025, is subject to regulatory approval.
In a note seen by Pluboard, Huaxin said it plans to offer Lafarge’s minority shareholders up to $0.062072 per share—the same price it paid Holcim—representing a 19.97% premium at the applicable exchange rate.
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