Lafarge Africa, a leading cement manufacturer, has reported a remarkable 172.7 per cent surge in net profit, achieving its highest earnings on record. This significant growth was primarily driven by increased sales volume.

The company, whose product portfolio also includes aggregate and concrete, attributed the improved bottom line to several factors, including higher plant stability, enhanced distribution efficiency, and a focus on cost optimisation. The buoyant construction sector in Nigeria, spurred by a significant housing and infrastructure deficit, continues to drive demand for building materials, including cement. This favorable environment contributed to a revenue increase of over 50 per cent, reaching N1.1 trillion.

Lafarge, now under the control of Huaxin Building Materials Group following Holcim's divestment of its 83.8 per cent shareholding last year, is pursuing an expansion strategy under its new majority owner. The company recently announced plans to increase production capacity at its Ashaka Cement and Sagamu Cement plants to 2 mtpa and 3.5 mtpa respectively. Lafarge anticipates a combined capacity of 14 mtpa upon completion of these projects.

Profitability was further boosted by a significant increase in finance income, which rose to N30.2 billion from N2.7 billion, reflecting improved interest income on current accounts. Simultaneously, finance costs decreased substantially by 74.5 per cent, a reduction of N32.1 billion, further strengthening the company's profit position.

Profit before tax increased by 170.1 per cent to N411.3 billion, while profit after tax climbed to N273.1 billion from N100.1 billion in the previous year.

“Full Year 2025 results are a testament of the effectiveness of our 4-point strategy, disciplined execution, and relentless focus on value creation,” said CEO Lolu Alade-Akinyemi in a statement. “With a 103 per cent surge in operating profit to N392 billion and margins widening to 37 per cent, we have demonstrated exceptional operating excellence,” the managing director added.

Lafarge also announced a final dividend of N6 per share, resulting in a potential payout of N96.6 billion. This is a significant increase compared to the N1.20 per share paid for the 2024 financial year. The company had previously declared an interim dividend of N4 per share last February.