With a net profit of N132.7 billion in the first six months of 2025, Lafarge Africa has produced some of the most amazing financial results on the Nigerian Exchange.
This means a 352% rise from the N29.4 billion registered during the same time in 2024 and puts the cement producer clearly ahead of its industry rivals in terms of both liquidity and profitability.
A 75% rise in sales caused the great profit increase; Lafarge’s topline increased from N295.6 billion in H1 2024 to N517 billion in H1 2025. Here, substantial sales growth points to great demand for cement, successful market penetration, and better operating efficiency.
Rising spending of 50 percent yearonyear to N221.2 billion exceeded revenue growth, hence improving the gross margin from 50 to 57 percent.
Operating profits for the group increased to N199.7 billion as operating margins hit 39%, rather than 16% last year. Though distribution expenses increased by 37%, this margin gain is ascribed to improved cost control measures including the company’s strategic switch to compressed natural gas (CNG) vehicles via ABC Haulage, its haulage partner, therefore reducing gasoline and delivery expenses.
With revenue of N268.6 billion, 70% higher than Q2 2024, Lafarge reached a watershed moment in the second quarter of 2025. Despite rising operational costs to N56.3 billion during the quarter, a sharp drop in financial expenses from N12.1 billion to N1.3 billion propelled aftertax income to N84 billion, 248 percent more than the equivalent time a year ago.
Lafarge’s asset base first exceeded the trillionnaira threshold in June 2025 to reach N1.03 trillion. Notwithstanding a fall in cash reserves to N210 billion caused by loan repayments and dividend distributions, capital expenditure was strong at N28.9 billion.
Moreover enhanced substantially were the cement company’s liquidity ratios. lafarge stresses its greater ability to meet near-term financial debts despite paying N1.7 billion in loans, declaring over N83 billion in dividends, and still maintaining a current ratio of 1.04—much higher than Dangote Cement’s 0.74 and BUA Cement’s 0.93—with a cash ratio of 0.53 compared to 0.11 for Dangote and 0.33 for BUA.
Net operating cash flow, which increased 340 percent from N18.8 billion in H1 2024 to N82.6 billion in H1 2025, is among the great financial performance triumphs for Lafarge. Including capital expenditure, the company ended the halfyear with a free cash flow of N53.7 billion, a remarkable recovery from a negative free cash flow the previous year.
It is laying a solid base for long-term expansion by means of wise debt usage, operational discipline, and strategic cost management. Financial results of Lafarge Africa point toward a company with a discovered beat. A clear sign of financial maturity and strategic path is the company’s capacity to produce significant cash without depending on new loans.
With a share price of N151 at the end of July and yeartodate rise of 116%, Lafarge’s market capitalization has crossed the N2.4 trillion threshold and is almost worth $2 billion.
Investors and analysts alike are keenly watching Lafarge Africa as the year progresses. 2025 could be the most successful year yet for the company if the current momentum continues, therefore confirming its reputation as a disciplined, best-performing leader in the Nigerian cement sector.
