July 29, 2026/CSL Report
Lafarge Africa delivered a strong performance in H1 2026, with Revenue rising by 31.2% year-on-year (y/y) to ₦678.4 billion from ₦517.0 billion in H1 2025. On a quarter-on-quarter (q/q) basis, Revenue increased by 2.6% to ₦343.5 billion in Q2 2026, compared with ₦334.9 billion in Q1 2026. The strong topline performance was supported by broad-based growth across all business segments. Cement revenue increased by 31.2% y/y to ₦661.5 billion, aggregates and concrete revenue grew by 34.8% y/y to ₦16.2 billion, while revenue from other products rose by 11.9% y/y to ₦646.8 million. Overall, the robust revenue performance reflects a combination of higher sales volumes and price increases, although management has not yet provided a detailed breakdown of the underlying revenue drivers.
Cost of Sales grew at a slower pace than Revenue, increasing by 16.0% y/y to ₦256.6 billion in H1 2026 from ₦221.2 billion in the corresponding period of 2025. Variable costs rose by 16.2% y/y to ₦170.3 billion, while production fixed costs increased by 10.8% to ₦40.6 billion and maintenance fixed costs grew by 10.3% y/y to ₦23.9 billion.
The combination of strong revenue growth and relatively moderate cost expansion drove a significant improvement in profitability. Gross Profit increased by 42.6% y/y to ₦421.8 billion in H1 2026, while Gross Margin expanded by 5.0 percentage points to 62.2%, from 57.2% in H1 2025.
Financial Highlights:
- Revenue: +31.2% y/y to ₦678.4bn
- Cost of Sales: +16.0% y/y to ₦256.6bn
- OPEX: +21.2% y/y to ₦131.0bn
- EBITDA: +50.3% y/y to ₦314.0n
- Operating Profit: +51.3% y/y to ₦290.9bn
- Profit After Tax: +57.0% y/y to ₦208.3bn
Stock Rating: Buy
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