Lafarge Africa Plc. 2025FY Earnings Note | Trillion Revenue Milestone Meets Operational Leverage
Lafarge Africa closed 2025 having crossed two thresholds simultaneously: the trillion-naira revenue mark and a fundamental transformation in earnings quality.Below are the key highlights of the earnings report:
❖ Ownership & Revenue Breakthrough: Revenue rose 53.04% YoY to NGN1.066trn, driven by 12% volume growth. Huaxin Cement's August 2025 acquisition strengthened operational discipline.
❖ Margin Strength: Gross margin expanded 814bps to 57.90%; operating margin rose 907bps to 36.77%, supported by efficiency gains and CNG-powered distribution.
❖ Finance Turnaround: A reversal in net finance costs, from a NGN40.49bn charge to a NGN19.22bn income contribution, was a key driver of the 172.72% YoY jump in PAT to NGN273.12bn.
❖ Balance Sheet & Dividend: Net cash stood at NGN388.07bn (vs. NGN237.12bn in 2024), with ROE improving from 19.84% to 39.35%. A final dividend of NGN6.00/share was declared, bringing the total dividend for the year to NGN10.00, up from NGN1.20 in 2024.
❖ Attractive Valuation: OVERWEIGHT recommendation, with a revised TP of NGN249.84, implying 18.97% upside.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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