What is Lafarge getting right? 

The cement giant, a member of Holcim Limited, is not just keeping pace; it is pulling ahead.

With a stunning 739.5% growth in pre-tax profit in Q1 2025 and a full-year 2024 net income of N100 billion, Lafarge Africa is proving that consistent performance is not just possible in Nigeria’s difficult macroeconomic climate it is replicable.

But what exactly is Lafarge getting right?

According to Lafarge Africa Plc, “We have the widest footprint in Nigeria’s cement industry, with cement operations in the Southwest (Ewekoro and Sagamu), Northeast (Ashaka), and South South (Mfamosing).” This broad reach gives the company a unique edge in serving customers across the country.

In addition, Lafarge runs Ready-Mix operations in Lagos, Abuja, and Port Harcourt – Nigeria’s biggest construction hotspots. This strategic positioning helps the company cut delivery times, manage costs, and boost sales volumes.

In Q1 2025, Lafarge grew revenue at a pace that outstripped costs, pushing gross profit up by 87% and lifting gross margin to 49.5%. Even with rising overheads, operating profit margin came in at 29%, a 31% improvement from 2023.

The company’s ability to control input costs is among the best in class. Lafarge has maintained an efficient, cost-conscious operation, with lowest FX losses and interest expenses among major players like Dangote Cement and BUA Cement in 2024.

Another thing Lafarge is getting right is managing debt. The company has fully repaid concessional loans from the CBN/BOI intervention fund, a clear signal of its commitment to staying low on leverage.

As of Q1 2025:

This prudent financial posture, combined with a sharp FX turnaround moving from heavy losses to a modest gain, helped Lafarge slash finance costs from N23 billion to just N388 million.

Lafarge is also stepping up its product game. In 2024, it launched Watershield Cement, specially designed to prevent water from seeping into buildings, a game-changer for homeowners tired of leaks and damp walls.

It also introduced:

Commenting on these strides, CEO Lolu Alade-Akinyemi said the company’s success isn’t luck — it’s about planning, innovation, and smart execution.

“Despite a challenging environment, we stayed focused. We used innovation and green growth to create value,” he said.

With Nigeria’s construction and infrastructure sectors expected to keep growing, Lafarge is ready. The company plans to keep costs low, sell more, and invest in greener, smarter products.

With Nigeria’s construction and infrastructure sectors expected to keep growing, Lafarge is ready. The company plans to keep costs low, sell more, and invest in greener, smarter products.

Their outlook for the rest of 2025 is bright, and they’ve promised to keep creating value for customers, investors, and the country.

In 2024, Lafarge gave investors the highest return among all cement companies; 126% total shareholders return, which means if you had invested in the stock, your money would have more than doubled.

In 2025 so far, the stock has already gone up by 17.8%, which is the best performance among the cement companies

But even with all that strong performance, Lafarge’s stock is still relatively cheap when compared to other cement companies. Here’s what that means:

Overall, Lafarge is making good money, its share price is going up, but it’s still selling at a fair price, so investors are getting good value and potential for more growth.