Lafarge Africa Plc increases to N334.88bn and PAT to N97.95bn in Q1 2026

Lafarge Africa Plc reported its unaudited Q1 2026 results with a strong performance, driven by
robust revenue growth and significant cost efficiency. Revenue increased by 34.80% y/y to
N334.88bn and rose by 17.20% compared to Q4 2025, indicating a strong expansion in topline
across both periods.

Cost of goods sold grew by 3.20% y/y and 3.90% compared to Q4 2025, significantly below the pace
of revenue growth. This supported a 64.80% y/y increase in gross profit to N215.02bn, with gross
margin expanding by 1,166bps y/y to 64.20% (+779bps compared to Q4 2025). The wide gap
between revenue and cost growth reflects a notable improvement in cost efficiency during the
period.

Operating Expenses

Operating expenses increased by 23.30% y/y but declined by 5.50% compared to Q4 2025. Despite
the increase on a yearly basis, OPEX growth remained below the rate of gross profit expansion,
supporting operating leverage. As a result, EBITDA rose by 90.70% y/y and 59.90% compared to Q4
2025 to N151.50bn, with EBITDA margin expanding significantly by 1,325bps y/y to 45.20%
(+1,210bps vs Q4 2025).

EBIT increased by 97.10% y/y and 50.80% compared to Q4 2025 to N141.27bn, with EBIT margin
rising by 1,333bps y/y to 42.20% (+940bps compared to Q4 2025). This reflects a strong translation
of revenue growth into operating profit, supported by both gross margin expansion and relatively
controlled operating costs.

Below the operating line, net finance income increased significantly to N7.85bn, up 440.30% y/y and
81.20% compared to Q4 2025. This provided additional support to earnings and reflects a stronger
contribution from finance-related income relative to prior periods.

Profit After Tax

Profit before tax increased by 104.00% y/y and 52.10% compared to Q4 2025 to N149.12bn. At the
bottom line, net income rose by 101.40% y/y and 49.90% compared to Q4 2025 to N97.95bn, with
earnings per share increasing to 6.08 kobo. The effective tax rate increased slightly to 34.30%
(+84bps y/y and +97bps compared to Q4 2025), moderating net income growth marginally.

Profitability improved materially across all metrics. Net profit margin expanded by 966bps y/y and
639bps compared to Q4 2025 to 29.30%, reflecting stronger earnings conversion. Return on
average equity rose to 52.70% (+1,595bps y/y), while return on assets increased to 30.40%
(+994bps y/y), indicating improved efficiency in capital utilization.

The balance sheet remains in a net cash position, with net debt-to-equity improving to (0.60x) from
(0.20x) in Q1 2025. Net debt-to-EBITDA also strengthened to (2.90x), reflecting increased cash
generation relative to earnings. Interest coverage declined to 30.10x from 184.70x in Q1 2025 but
remains at a very strong level, supported by the significant growth in operating profit.

Lafarge Africa’s Q1 2026 performance reflects strong topline growth and a significant improvement
in cost efficiency, which drove substantial margin expansion and earnings growth. The consistency of
improvement across both year-on-year and quarter-on-quarter metrics highlights the strength of
the underlying operating performance. SOURCE: Coronation Asset Management