Cement Company Doubles Profit as FG Orders BUA, Dangote, Others to Sell at New Price

• The profit after tax for Lafarge Africa Plc was N100.1 billion, a 96% increase over the N51.1 billion reported in 2023
• The cement manufacturer's revenue also grew, going up 72% from N405.5 billion to N696.8 billion in 2024
• Better pricing strategies and higher sales volume could be associated with the Lafarge Africa's success

Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.

For the fiscal year that concluded on December 31, 2024, Lafarge Africa Plc reported a profit after tax of N100.1 billion, which is a 96% increase over the N51.1 billion reported in 2023.

Revenue for the cement manufacturer also increased, rising 72% to N696.8 billion in 2024 from N405.5 billion the year before.

Despite ongoing macroeconomic difficulties, Lafarge Africa's success was fueled by increased sales volume and better pricing tactics, according to company audited financial results submitted on Thursday to the Nigeria Exchange.

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Due to the company's capacity to control production costs and increase efficiency, its gross profit increased by 68% from N206.7 billion in 2023 to N346.7 billion.

At N120.4 billion, selling and distribution costs went up 54%, while administrative costs also went up from N27.6 billion to N40.1 billion.

The company also made N193 billion in operating profit, which was 89% more than the N102 billion it made in 2023.

Meanwhile, increasing interest rates and borrowing expenses caused finance costs to soar 64% to N42.5 billion.

Lafarge reported a profit before tax of N152.3 billion, a 93% increase over the N78.8 billion reported the year before, despite the rise in expenses.

Even though income tax expenses increased by 89% to N52.1 billion from N27.6 billion in 2023, Lafarge Africa's bottom line continued to climb, ending the year with a N100.1 billion profit after taxes.

Lafarge Africa's total assets increased by 45% from N681.4 billion in 2023 to N990.5 billion in 2024 during the period under review. Due to increases in production capacity and infrastructure, non-current assets, including as property, plant, and equipment, increased from N360.2 billion to N409.8 billion.

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Strong liquidity and a sound financial position are demonstrated by the company's cash and cash equivalents, which increased dramatically to N237.9 billion from N168.4 billion in 2023.

Due to increasing trade payables and contract obligations brought on by increased economic activity, overall liabilities grew from N246.3 billion in 2023 to N485.9 billion in 2024.

As a result of higher payouts to shareholders, the company's earnings per share climbed from 317 kobo in 2023 to 622 kobo.

According to the PUNCH, Lafarge Africa Plc made a profit after tax of N57.3 billion for the nine months that ended on September 30, 2024. This is a 46% increase over the N39.3 billion that was achieved during the same period in 2023.

FG sets new cement price

Legit.ng reported that the federal government has called on cement manufacturers to reduce the price of a bag to N7,000.

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David Umahi, the minister of works made this call during a meeting with MTN and RCC Company Nig. Ltd over the slow funding and execution of the Enugu-Onitsha Expressway at the Ministry’s headquarters in Abuja on February 26, 2025.

In a statement posted on the ministry’s website, Umahi urged cement manufacturers to reduce the price of cement to N7,000 immediately, highlighting its importance in the construction industry, particularly for Continuously Reinforced Concrete Pavements.

Source: Legit.ng