March 2, 2026/InvestmentOne Report

Lafarge Africa Plc delivered an impressive FY:2025 performance, with revenue growing by 53.04% YoY to a historic NGN1.06trn mark, driven by improved volumes and favourable pricing dynamics, which supported earnings expansion to NGN16.96 kobo per share. Lafarge continued to distinguish itself through its innovation and eco-friendly products. In FY:2025, Lafarge launched Ground Calcium Carbonate (GCC) in Q1:2025, rolled out ECOPlanet cement in the Western market in Q2:2025 and introduced ECOCrete, Nigeria s first low-carbon ready-mix concrete in Q3:2025.

These product rollouts, alongside price adjustments boosted this revenue as Cost of sales (COS) advanced at a slower pace of 28.25% YoY to NGN448.94bn relative to revenue growth in FY:2025. Gross profit accelerated by 78.06% YoY to NGN617.37bn, reflecting the moderating inflationary pressures and relatively stable domestic energy price in the year. Consequently, the gross profit margin expanded by 814bps to 57.90% in FY:2025.

Looking ahead, we expect Lafarge to sustain its impressive run in 2026, supported by Huaxin s collaboration and industrial expertise which should enhance operational efficiency and capacity utilization amid the anticipation of macroeconomic tailwinds. The plans to expand Ashakacem Plant in Gombe State and Sagamu Plant in Ogun State should further strengthen production capacity.

Upon completion, Ashaka and Sagamu Plants total capacity will reach 2.00Mtpa and 3.50Mtpa respectively, potentially lifting the group s total capacity to 14.00Mtpa. We therefore place an OVERWEIGHT rating on WAPCO, hinged on improved margins expectation and ongoing capacity expansion.

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