Lafarge Africa Plc grew profit after tax by 246% year on year to N207.780 billion, according to an unaudited financial statement for 9 months filed on the Nigerian Exchange by the cement company.
The cement company posted a strong bottom line as net sales expanded by 68% year on year to N780.496 billion versus N479.496 billion posted in the equivalent period in 2024. The company attributed net sales growth to uptick in cement volumes and improved plant reliability.
Q3 revenue expanded by 43.3% year on year reflecting growth across all major segments—cement and aggregates & concrete – with capacity utilisation improving by about 7.0%.
Analysts at Cordros Securities Limited also believe that price increases contributed meaningfully to the growth. However, revenue declined slightly by 1.9% q/q, reflecting the typical Q3 slowdown caused by heavy rainfall affecting construction activity.
Unsurprisingly, gross margin expanded by 10.90 percentage points to 63.8% due to slower growth in cost of sales ex-depreciation relative to revenue.
The moderation in costs reflects a tempered 13.3% year on year increase in variable cost which account for 73.9% of cost of goods sold and a 0.9% year on year growth in maintenance fixed cost.
Cordros Securities Limited said the slowdown in these cost elements is attributable to lower energy prices, increased use of alternative fuels, and relative FX stability.
Amidst double digits inflation rate, Lafarge Africa operating expenses climbed by 37.5% year on year, primarily driven by higher distribution expenses as a result of logistics-related fuel costs.
Below the operating line, WAPCO reported a net finance income of N7.42 billion in Q3-25, a reversal from a net finance cost of N3.47 billion in Q3-24.
This was supported by a 53.2x year on year increase in finance income to N9.84 billion and a N193.36 million net FX gain, which offset the 24.0% year on year increase in finance costs to N2.61 billion.
Ultimately, profit before tax grew by 138.1% year on year to N113.55 billion, while profit after tax expanded by 144.5% year on year to N75.10 billion.
“WAPCO extended the strong momentum from H1-25 into Q3-25, supported by favourable pricing dynamics, volume growth, and easing cost pressures.
“While the quarter marginally underperformed Q2-25 due to seasonally weaker cement demand following the rainy season, the performance remains solid within the context of typical Q3 cyclicality.
“Looking ahead, we expect earnings resilience to be sustained over the remainder of the year, underpinned by a supportive macroeconomic backdrop, continued product innovation and market penetration, operational efficiency gains from improved plant utilisation, stable energy pricing and increased alternative fuel adoption,” Cordros Securities Limited said in a review.
Commenting on the results, Lolu Alade-Akinyemi, CEO of Lafarge Africa, said, “Building on the performance from previous quarters, Q3 results showcase our cost discipline, strategic market positioning, unwavering commitment to value creation, and strong operational efficiency – demonstrated by a +7% YoY improvement in capacity utilisation.
“We ended Q3 with net sales up 43%, operating profit up 107%, and profit after tax of N75bn. We closed 9M 2025 with net sales and operating profit up 63% and 129%, respectively.
“Our 9M 2025 performance reaffirms our resilience, underpinned by sustained volume growth, operational excellence, innovative product offerings, and agile response to market opportunities.
“As we look forward, we remain attentive to the dynamic macroeconomic environment, and we are confident that our resilience and strategic focus position us to seize emerging opportunities, drive sustainable growth, and deliver lasting value.”
On the outlook for the year, Lafarge Africa said Nigeria’s infrastructure and construction sector is expected to maintain its growth momentum, as the prevailing macroeconomic headwinds continue to ease pressures on consumer purchasing power.
“Accordingly, we retain a positive outlook for the remainder of 2025, with market growth projected to align with the upward trend observed in the first nine months of the year”.
Lafarge Africa said the cement company will continue to leverage volume growth opportunities across its markets while maintaining disciplined cost management.
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