June 19, 2026/CSL Report

Lafarge Africa delivered an impressive performance in Q1 2026, with Revenue increasing by 34.8% year-on-year (y/y) to ₦334.9 billion. The strong topline growth was broad-based across all product categories, supported by both higher pricing and increased sales volumes. Cement revenue, which remains the company’s primary earnings driver, rose by 35.0% y/y to ₦327.6 billion.

Revenue from aggregates and concrete expanded by 28.6% y/y to ₦6.9 billion, while other product categories recorded a 6.8% y/y increase to ₦300.0 million. The robust Revenue growth, coupled with a relatively moderate increase in operating costs and a significantly improved finance position, drove Profit Before Tax (PBT) higher by 104.0% y/y to ₦149.1 billion.

Looking ahead, we expect Lafarge Africa’s growth momentum to remain strong, underpinned by favourable pricing dynamics and continued volume expansion. We forecast average cement prices to increase by 30.0% y/y to ₦203,852 per tonne in FY 2026, while cement sales volumes are projected to rise by 10.8% y/y to 7.5 million metric tonnes.

Consequently, we estimate Revenue will grow by 45.7% y/y to ₦1.6 trillion in FY 2026, compared with ₦1.1 trillion recorded in FY 2025. We also anticipate sustained earnings growth, supported by strong Revenue expansion, a moderation in cost pressures, and improved Net Finance Income. As a result, we forecast Profit Before Tax (PBT) to increase by 43.9% y/y to ₦681.9 billion in FY 2026.

We have revised our target price upward to ₦404.32 per share from our previous target price of ₦214.40 per share, while maintaining our BUY recommendation on Lafarge Africa. This implies a potential upside of 22.5% relative to the last closing price of ₦330.00 per share. Our valuation is based on a blended methodology comprising Discounted Cash Flow (DCF) and Relative Valuation, weighted 60% and 40%, respectively.

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

​Lafarge Africa Q1 2026 Company Update.pdf