Lafarge Africa Plc has unveiled its audited financial report for the nine-month period ending September 30, 2024, showcasing notable financial achievements amid a challenging cost environment.
The company reported a pre-tax profit of N91.5 billion, representing a 49.69 per cent increase from the N61.1 billion recorded during the same period in 2023.
Post-tax profit rose by 45.78 per cent to N57.2 billion, while revenue surged by an impressive 66.02 per cent to N479.9 billion, driven predominantly by cement sales, which accounted for 97 per cent of total revenue.
Lafarge Africa’s revenue for the first nine months of 2024 reached N479.9 billion, up from N289 billion in the same period last year, marking a 66.02 per cent year-over-year increase.
Cement sales were the primary driver, contributing 97 per cent of total revenue, while aggregates and concrete sales accounted for 2.67 per cent.
Despite the strong revenue growth, the company faced a significant increase in costs. The cost of sales rose by 74.86 per cent year-over-year to N246.5 billion, driven by higher production variable costs, which comprised 66.34 per cent of the total.
Industry analysts have praised Lafarge Africa’s robust performance, attributing its growth to strategic investments and operational efficiency.
“Lafarge’s ability to achieve a 66% revenue increase despite rising costs demonstrates robust demand for its products and effective cost management,” said Adewale Adekunle, a market analyst at FCMB Capital Markets.
Oluchi Eze, a senior analyst at Coronation Research, emphasized the impressive growth in ‘other income,’ which rose to N2.2 billion from N540.7 million last year. “This indicates the company is diversifying its income streams, which is crucial for weathering macroeconomic challenges,” she noted.