Lafarge Africa Plc has announced a remarkable 246 percent increase in its net profit, reaching N207.8 billion for the nine months ending September 2025, signalling one of the company’s strongest financial performances in recent years. The cement manufacturer attributed the surge in profitability to efficient cost management, rising product demand, and improved operational strategies across its production plants nationwide.
In its unaudited financial statement released to the Nigerian Exchange Limited (NGX), Lafarge Africa revealed that its revenue rose significantly during the review period, driven by strong market demand for cement and related products despite inflationary pressures and exchange rate volatility that affected input costs. The company’s management said the impressive results reflect the resilience of its business model and its ability to adapt to Nigeria’s evolving economic conditions.
The report showed that Lafarge Africa’s revenue climbed by more than 45 percent year-on-year, supported by growth in infrastructure projects, housing developments, and private construction activities. The company noted that demand from both public and private sectors remained robust, particularly in the southern and northern markets where urbanisation and real estate investments are expanding rapidly.
Chief Executive Officer of Lafarge Africa, Lolu Alade-Akinyemi, said the company’s focus on operational excellence and sustainability has yielded tangible results. According to him, the improved profit figures were achieved through a combination of strategic cost optimisation, improved plant performance, and enhanced logistics efficiency. “Our strong performance for the first nine months of the year reflects our consistent execution of strategic initiatives, prudent cost control, and resilience in the face of macroeconomic challenges. We are committed to maintaining sustainable growth and delivering value to our shareholders,” he stated.
He added that the company’s investment in alternative fuel sources, including biomass and waste materials, helped to mitigate the impact of rising energy costs. Lafarge Africa has been gradually reducing its dependence on fossil fuels by implementing renewable energy solutions in several of its production facilities. This move, according to the CEO, has not only lowered operational costs but also reinforced the company’s commitment to environmental sustainability.
The cement giant also recorded a sharp rise in earnings per share (EPS), reflecting the substantial profit growth. Investors responded positively to the announcement, with Lafarge Africa’s stock price appreciating on the NGX following the release of the financial results. Analysts said the strong profit performance positions Lafarge Africa as one of the best-performing firms in the industrial goods sector for 2025.
According to market analysts, the company’s ability to sustain production amid supply chain disruptions, energy price fluctuations, and foreign exchange scarcity demonstrates effective risk management and strategic foresight. They noted that Lafarge Africa’s focus on local sourcing of materials, investment in modern technology, and expansion of distribution networks have been central to its growth trajectory.
Financial experts also pointed out that the 246 percent surge in net profit underscores the cement industry’s potential resilience in Nigeria’s challenging economic environment. With inflation still hovering above 25 percent and the naira facing pressure in the foreign exchange markets, many manufacturers have struggled to maintain profitability. However, Lafarge Africa’s approach to innovation and efficiency has set it apart from competitors.
During the review period, the company maintained steady production output across its key plants in Ewekoro, Ashaka, and Mfamosing. These plants have benefited from continuous upgrades, resulting in improved energy efficiency and higher production capacity. The company’s distribution network, which includes hundreds of dealers and distributors nationwide, also played a vital role in sustaining supply despite logistical bottlenecks in some regions.
In addition, Lafarge Africa’s management reaffirmed its commitment to sustainable construction solutions, noting that the company continues to develop eco-friendly cement products that reduce carbon emissions while maintaining quality standards. The firm’s sustainability strategy aligns with its parent company, Holcim Group’s global agenda for green construction and climate resilience.
Looking ahead, Lafarge Africa expressed optimism about the remaining months of the financial year, citing ongoing infrastructure investments by the federal and state governments as key growth drivers. With Nigeria’s renewed emphasis on road construction, housing development, and industrial expansion, demand for cement is expected to remain strong.
The CEO further emphasised that the company would continue to invest in innovation, employee development, and safety, which are essential components of its long-term success. He reiterated that Lafarge Africa’s robust balance sheet and improved liquidity position would enable it to pursue future growth opportunities, including potential expansions and sustainability-focused projects.
Investors and market watchers believe that the company’s nine-month performance will likely translate into strong year-end results, potentially leading to improved dividend payouts. The record-breaking profit margin, analysts said, could enhance investor confidence and strengthen Lafarge Africa’s market leadership within the Nigerian construction materials sector.
Despite prevailing economic headwinds, including high borrowing costs and persistent inflation, Lafarge Africa’s management remains confident in its ability to maintain profitability. “We are continuously exploring innovative solutions to improve efficiency and reduce costs,” Alade-Akinyemi noted. “Our goal remains to build a stronger, more sustainable company that contributes to Nigeria’s growth and development.”
With its latest results, Lafarge Africa has reaffirmed its position as a leading player in Nigeria’s cement industry, combining profitability with sustainability. The company’s strong financial performance demonstrates the benefits of disciplined management and a long-term strategic focus on innovation and operational efficiency, offering renewed optimism for stakeholders and the broader economy.
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