February 28, 2025/CSL Research

Financial Highlights:

• Revenue +71.8% y/y to N696.76BN
• Cost of Sales (ex-depreciation) +86.8% y/y to N322.67BN
• OPEX (ex-depreciation) +52.0% y/y to N158.48BN
• EBITDA +72.0% y/y to N222.38BN
• Operating Profit +89.2% y/y to N193.01BN
• Profit before Tax +89.0% y/y to N152.52BN

In its recently released FY 2024 results, Lafarge Africa reported a 71.8% y/y Revenue growth to N696.76bn in FY 2024 from N405.50bn in the prior period (FY 2023).

Similarly, on a q/q basis, Revenue was up by 17.9% to N216.82bn in Q4 2024 from N183.92bn recorded in Q3 2024. The broad-based growth in cement sales (up 72.6% to N677.57bn), and aggregate and concrete sales (up 45.1% to N17.78bn), drove the topline growth in FY 2024. While no information has been provided on the Revenue breakdown, we attribute the company’s top-line growth to a mix of price increases and volume growth.

Maintenance fixed costs surged by 94.38% y/y, reaching N40.16 billion, while production variable costs rose by 90.76% y/y to N232.18 billion. Additionally, production fixed costs increased by 65.54% y/y to N50.32 billion. Consequently, the Cost of Sales (excluding depreciation) rose by 86.8% y/y to N322.67 billion in FY 2024, up from N172.78 billion in FY 2023, driven by high inflation and rising energy costs.

Despite these cost increases, Gross Profit grew by 60.7% y/y to N374.09 billion in FY 2024. However, the Gross Margin declined by 6.5%, falling to 53.7% from 57.4% in FY 2023.

Stock Rating: BUY Target Price: N87.77/s

To read full report, click on the link below​​

​Lafarge Africa FY 2024 Earnings Quick Take .pdf