Lafarge Africa posts N75.1billion Profit After tax for Q3 2025
Lafarge Africa extended its strong first-half performance into the third quarter of 2025, delivering resilient results amid softer seasonal cement demand. The Group reports that Lafarge Africa Posts N75.1bn profit after tax for Q3 2025, up 144.4% year-onyear, although down 10.6% quarter-on-quarter due to expected downturn due to the rainy season. On a nine-month basis,
PAT rose 245.9% year-on-year to N207.8bn, marking the Group’s strongest nine-month earnings number on record. Revenue advanced 63% year-on-year to N780.5bn in 9M 2025, supported by sustained pricing strength and healthy volume growth across key segments. Q3 revenue declined marginally by 1.9% quarter-on-quarter to N263.5bn, reflecting softer sales volumes due to seasonality caused by the onset of the rainy season. Cement remained the core revenue driver,
accounting for over 97% of total sales, while contributions from aggregates and concrete remained modest.
Cost of sales rose 34.2% year-on-year to N324.4bn, reflecting higher energy and distribution costs, though well below the pace of topline growth. Consequently, gross profit nearly doubled to N456.1bn, with gross margin expanding 885bps to 58.4%, underscoring improved cost efficiency, increased diesel and fuel substitution for alternative fuel, and better operational discipline.
Operating expenses (OPEX) rose 47.8% year-on-year to N162.5bn, driven by higher outbound freight costs and a step-up in technical service fees. Despite this, EBITDA surged 128.1% to N299.9bn, while EBIT climbed 129.4% to N298.4bn, translating to an EBIT margin of 38.2% (+1,111bps YoY).
A sharp turnaround in finance income continued to bolster bottom-line growth. Net finance income improved from a N35.8bn loss in 9M 2024 to a N14.9bn gain in 9M 2025, reflecting FX gains, lower bank charges, and minimal interest bearing debt. Effective tax rate moderated to 33.7%. Lafarge closed the period with a robust balance sheet, maintaining a net cash position as cash reserves exceeded total borrowings. Return on average equity (ROAE) and return on average assets (ROAA) improved significantly to 48.9% and 27.5%,respectively, highlighting strong earnings leverage and capital productivity.
Looking ahead, management is expected to consolidate operational gains through cost efficiency, product mix optimisation, and disciplined pricing. With continued infrastructure demand and easing energy costs, Lafarge remains positioned for a resilient close to the 2025 financial year.
