By Bamidele Famoofo
WorldStage– The strategic partnership between Lafarge Africa Plc, one of Africa’s leading cement makers and Huaxin Building Materials Limited, boosted its operations , leading to higher profitability in first quarter ended March 31, 2026.
Lafarge Africa Plc delivered a strong financial performance in Q1 2026, with gross earnings increasing by 34.84.percent year-on-year to ₦334.88 billion from ₦248.35 billion in Q1 2025. This growth was primarily driven by volume expansion,
improved plant stability, enhanced distribution efficiency, and higher sales.
Riding on the strong revenue growth, gross profit rose significantly by 67.10 performance to ₦205.49 billion from ₦122.98 billion. This was underpinned by robust topline expansion, improved operational efficiency, and disciplined cost management.
At the bottom line, profitability strengthened considerably, as earnings before tax surged by 97.14 percent to ₦141.27 billion, largely driven by the growth in both gross earnings and gross profit. Similarly, profit after tax more than doubled, increasing by 101.37 percent to ₦97.95 billion from ₦48.64 billion in Q1 2025, reflecting stronger earnings conversion.
Shareholder value improved markedly, with earnings per share rising to ₦6.08
from ₦3.02. Profitability ratios also advanced, as Return on Equity increased to 12.37 percent from 7.01 percent, while Return on Assets rose to 7.14 percent from 4.03 percent, indicating more efficient utilization of both equity and asset bases.
On the balance sheet, performance was mixed but remained broadly positive.
Total assets grew by 13.63 percent to ₦1.37 trillion from ₦1.21 trillion, while total
liabilities increased to ₦580.67 billion from ₦514.03 billion.
Meanwhile, shareholders’ equity strengthened by 14.11 percent to ₦791.95 billion from ₦693.99 billion, supported by retained earnings and an improved capital structure. This enhances the company’s capacity to withstand near-term pressures while positioning it for sustained growth.
