Lafarge achieves N91.5 billion pre-tax profit in nine-month surge as cement sales climb 

This represents an increase from the N61.1 billion recorded during the same period in 2023, reflecting a year-over-year rise of 49.69%.

The company’s post-tax profit rose by 45.78% to N57.2 billion, while revenue surged by 66.02% to N479.9 billion, with cement sales contributing 97% of total revenue.

Lafarge also reported a notable rise in ‘other income,’ which jumped to N2.2 billion from N540.7 million the previous year.

Commentary 

A review of Lafarge’s third-quarter 2024 results indicates an improvement in performance, despite an increase in both the cost of sales and administrative expenses.

The company reported a 66.02% year-over-year revenue increase for the first nine months, reaching N479.9 billion, compared to N289 billion in the same period last year.

However, the cost of sales rose significantly by 74.86% year-over-year, totaling N246.5 billion, up from N141 billion.

Despite the cost of sales surge, Lafarge recorded a gross profit increase of 57.60% year-over-year, amounting to N233.3 billion, up from N148 billion in 2023.

Administrative expenses also saw a notable increase, rising by 57.86% year-over-year to N29 billion, compared to N18.4 billion the previous year.

Additionally, the company’s ‘other income’ increased to N2.2 billion, up from N540.7 million in the prior year.

Lafarge also reported an 82.55% year-over-year increase in operating profit and a 49.69% rise in pre-tax profit, reaching N91.5 billion.

Post-tax profit increased by 45.78% year-over-year to N57.2 billion, while earnings per share rose by 45.90%, reaching N3.56 compared to N2.44 in the prior year.

As of September 30, 2024, the group’s total assets surged to N808 billion, marking a notable increase from N681 billion at the end of 2023.

This growth was primarily fueled by a significant rise in non-current assets, largely attributable to a robust investment in property, plant, and equipment, which grew from N360 billion to N390 billion.

Current assets also saw a substantial uptick, especially in inventories, which surged from N54 billion to N100 billion.

Current assets also saw a substantial uptick, especially in inventories, which surged from N54 billion to N100 billion.