Lafarge Africa PLC released its FY2025 Audited Financials on the 26th of February, 2026, and the numbers were quite impressive. From a struggling company a few years ago with its loss-making South African misadventure to a company that has become a toast to investors, Lafarge has seen it all. Between December 17, 2018 and January 23, 2019 the company did a Rights issue of 7.4 billion ordinary shares at ₦12 per share on the basis of 6 new shares for every 7 existing shares held. Sometime in 2019 the share price even dipped further to ₦9 - ₦10 range. That same company, Lafarge Africa PLC (NGX ticker symbol: WAPCO) now has its share price trading at circa ₦215 as at the date of publishing this article, placing its valuation on the NGX at over ₦3.4 trillion.
Imagine for a moment that you had invested ₦1 million in the stock when it was selling for ₦10 and held until now, that would have been a 21.5 bagger right there, essentially appreciating to ₦21.5 million within a period of 7 years. "Inflation has nothing on you". In Nigerian parlance, your village people would think you did "ogwu ego" (traditional, often mystical methods, or charms used to attract wealth, business, and prosperity). This is one of many examples of the wealth generating capacity of the stock market and how it can transform financial destinies if you understand the game and know how to play it.
But that's not the story.
A look at Lafarge's 2025 result showed that for the first time, the group hit over ₦1 trillion in revenue (₦1.066 trillion), a 53% growth above the previous year. Gross profit closed at ₦617 billion growing over 78% above previous year, Operating profit at ₦392 billion and Profit after tax at ₦273 billion, another 173% growth above the previous year. This implies that for every ₦100 sales (revenue) the company made, it retained about ₦58 as gross profit and around ₦25.6 as net profit after all expenses.
According to the company, the boost in revenue was supported by growth in volume (not just price increment), enhanced plant stability (66% capacity utilization reflecting improved plant reliability with a reduced downtime), and improved distribution efficiency; while the solid Profit after tax was underpinned by volume-led revenue growth, disciplined cost optimization across operations, and efficient financial management. Over 500 CNG trucks were deployed into their operations, which helped drive cost discipline and maintain revenue per ton growth. In addition, 15% Alternative Fuel (AF) substitution rate and energy mix optimization mitigated volatile gas and power costs.
Earnings per share closed at ₦16.96 compared to ₦6.22 in the previous year, which translates to a Price-to-Earnings (P/E) ratio of approximately 12.6 based on the current price.
Lafarge's balance sheet also showed strong numbers. For a company that generated over ₦1 trillion in revenue for the year, it reported zero borrowings, and only ₦13.6 billion in receivables, attesting to the cash-generating engine that it is. Retained earnings grew from ₦315 billion to ₦504 billion, as Shareholders Equity grew from ₦504 billion to close at ₦694 billion. Return on Equity and Return on Capital all printed above 35%, approximately twice the current obtainable rates on FGN bonds.
The Cashflow statement was not left out, as Net Operating cashflow closed at ₦292 billion, and cash and cash equivalents closed at ₦385 billion — a very strong cash position.
Speaking on the company's plan for the future, Lafarge Africa CEO, Lolu Alade-Akinyemi said, "Looking ahead, with Huaxin’s collaboration and Industrial expertise, we are excited about the year 2026 and the opportunities ahead. We maintain a prudent and agile approach to capital allocation and cost management while positioning the business to capitalize on emerging market opportunities. Our resilience, operational scale, and strategic clarity provide a strong foundation for sustainable growth and enhanced shareholder value".
Recall that on the 1st of December, 2024 Lafarge Africa announced that its then major shareholder, the Holcim group had signed an agreement with Huaxin Cement to sell its shareholding in Lafarge Africa PLC. The transaction was completed in August 2025 and was reportedly valued at about $1 billion. Upon completion, the Huaxin Cement entities now hold a combined 83.81% shareholding in Lafarge Africa Plc. According to the notice filed on the NGX, it stated that "following completion of the transaction, Lafarge Africa Plc will remain listed on NGX and, subject to regulatory approvals, Huaxin Cement intends to launch a mandatory takeover offer in compliance with applicable laws and regulations". So far, not much progress has been made on the mandatory takeover, especially after the National Assembly developed interest in the transaction and investigated it at some point.
Despite Holcim's divestment from direct ownership of Lafarge Africa, it continues to hold a 41.8% stake in Huaxin Cement, making it the company’s largest shareholder. This means Holcim’s influence, and indirectly its presence in Lafarge Africa, has not been completely erased.
Lafarge Africa PLC plans to expand its operations. According to the statement issued by the company, "We have kickstarted our plans to expand Ashakacem Plant in Gombe State and Sagamu Plant in Ogun State. Upon completion, Ashaka and Sagamu Plants’ total capacity will be 2MT and 3.5MT per annum respectively. After the conclusion, our total capacity will rise to 14.0Mtpa."... compared to the current 10.5Mtpa capacity (actually 9.5Mtpa operational- 1MT Shagamu plant is mothballed), a 33% increase. With this expansion and its focus on capacity utilization of its current production facilities, your guess is as good as mine with respect to volume and revenue growth in the coming years.
According to the CEO in the last Investors' Call, the planned expansion project is for a 12-month period, and they plan to fund it internally, not externally — "Project expected to be funded internally, while ensuring adequate provision is available for dividend". Remember that Cash and cash equivalents at the end of 2025 stood at ₦385 billion.
In terms of Outlook for 2026, the company's statement reads: "With macroeconomic headwinds moderating and consumer demand showing signs of recovery, Nigeria’s infrastructure and construction sector is expected to maintain the positive momentum of 2025 into the coming year. We anticipate the market growth to sustain the upward performance trend recorded. Lafarge Africa Plc will continue to explore the volume opportunities in our markets, while sustaining prudent cost optimization to protect margins. Our sustainability-driven growth model remains at the core of our long-term value creation strategy, underpinned by the continued execution of our strategic priorities". With 2026 being a pre-election year, and going by political antecedents in Nigeria, there would likely be more cash available in the economy, with the Government spending more to win citizens to its side, which would usually be positive for companies.
Lafarge Africa's transition from Holcim to Huaxin seems to be paying off shareholders in terms of cash distribution through dividends. Following Huaxin's takeover , the company proposed a massive increase in dividends. For the 2025 financial year, they recommended a total dividend of ₦6.00 per share (approx. ₦96.65bn total), a 400% increase from the ₦1.20 paid in 2024, signaling a new, high-payout dividend policy which means returning more value to shareholders. Prior to this, during the transition period, they paid an interim dividend of ₦4 in May 2025, which was not expected by shareholders. The transition also coincides with the company's new strategy of focusing on Capacity utilization as well as Capacity Expansion. The coming years will reveal whether this transition finally strengthens Lafarge’s distribution network nationwide, especially at the wholesale and retail level (vis a vis its competitors), making products consistently available where consumers need them — a puzzle that has lingered for too long.
From a company once weighed down by legacy challenges to a business now delivering record earnings and rewarding shareholders handsomely, Lafarge Africa’s journey mirrors the transformational potential of Nigeria’s industrial sector. With record revenue, exceptional profitability, zero borrowings, robust cashflows, new ownership influence, capacity utilization and expansion, and a strengthened balance sheet, the business is rewriting its story and is clearly positioned for sustained growth. The momentum of FY2025 may just be a preview of what lies ahead as Lafarge deepens capacity, improves execution, and positions itself for a more competitive future. Like Warren Buffett says, “A truly great business must have an enduring ‘moat’ that protects excellent returns on invested capital”. Without narrowing down company by company, the Cement industry in Nigeria sure does have a moat around it, as it has a high barrier to entry. And as Nigeria's infrastructure gap continue to be addressed, the cement industry would remain one of the biggest beneficiaries, especially with the FGN's preference for concrete roads.
About Lafarge Africa PLC
Lafarge Africa Plc, a leading Sub-Saharan Africa building solutions company is a member of Huaxin Building Materials Group Co., Ltd. Listed on the Nigerian stock Exchange, Lafarge Africa Plc is actively participating in the urbanization and economic growth of Nigeria, the largest economy in Africa. It is in the business of manufacturing and marketing of cement and other cementitious products such as Ready-Mix Concrete, Aggregates, Fly-Ash etc.
Lafarge Africa Plc has the widest footprint in Nigeria with cement operations in the South West (Ewekoro and Sagamu in Ogun State), North East (Ashaka, in Gombe State), South East (Mfamosing, Cross Rivers State), with Ready-Mix operations in Lagos, Abuja, and Port Harcourt. Lafarge Africa Plc has a current installed cement production capacity of 10.5Mtpa.
Lafarge Africa Plc leverages on its innovative expertise to provide value-added products and services solutions in the building and construction industry in Nigeria.
Update: In their recent Notice of Annual General Meeting, one of the proposed special businesses/resolutions of the day to be voted on by shareholders is to consider, and if thought fit, to pass a resolution that the name of the company be changed to "HBM Nigeria PLC", and that all necessary steps be taken to effect it. HBM is likely an abbreviation for "Huaxin Building Materials", a similar name by which the parent company is listed in China, its country of origin. The parent company was formerly known as "Huaxin Cement Co., Ltd." and changed its name to "Huaxin Building Materials Group Co., Ltd." in October 2025. Huaxin Building Materials Group Co., Ltd. was founded in 1907 and is headquartered in Wuhan, China.
At Cowryvest, our goal is to simplify investment analysis and help African investors make better financial decisions through data-driven insights.
If you are new to investing in the stock market and do not know where to start, check out this article: How to Start Investing in the Nigerian Stock Market: A Guide for Beginners.
To see an updated list of dividends declared by Nigerian publicly listed companies in 2026, check out this article: List of Dividends Declared in 2026 by Nigerian Companies (NGX Update)
You may also check out other interesting articles here.
Happy investing. Feel free to share this article within your network.
DISCLAIMER: All contents on this website are for informational purposes only and should not be taken as any form of investment advice. Do your own research and contact your financial advisor before making any investment decision. All contents may not be reproduced, distributed, or used without prior written permission.
Comments
Post a Comment