Lafarge Africa is one of 3 listed cement firms, listed on the NGX. The others are Dangote Cement and BUA Cement. The company released its H1 2025 results, after market close yesterday.

H1 2025 results 

H1 means the first 6 months of the company’s financial year. Lafarge Africa runs a 12 month calendar from January to December. So H1 2025  from January to June, 2025

H1  results tend to have Q2 numbers as a standalone. So one can compare Q1 and Q2. You can also compare Q2 2025 which the same period last last year.

Lafarge Africa made N516 billon in revenue, up 74% from the previous year

N132.6 billion in profit after tax, up 352% from the same period last year.

Was there a price increase? 

If you look at Q1, and Q2, revenue went up marginally. This suggests the company may have taken a price increase during the period.

The company did a decent job of managing costs. Cost of sales dropped from the previous quarter. Same for finance costs

Target price 

H1 earnings per share came in at N8.24. If H2 runs at the same pace. then you would  have FY 25 earnings of N16

If you apply a 10X multiple, meaning the stock should trade at 10 times earnings, that’s a target price of N160. 

In the last 3 years,  the company has grown its earnings by an average of  30%.  If you pick a conservative growth in earnings of say 15%. Then the stock should be trading just at N240 . 

Dividend forecast

The company historically tends to payout 60% of its earnings as dividend. Going by that, it means total dividend payout should be at least N9. It paid an interim dividend of N4 a few months ago. So final dividend should be at least N5.

Disclaimer

This is not investment or trading advice, in any shape or form. Please do your own research.