Following a formidable first half yr 2025 exhibiting, analysts now challenge the cement big may shut the 2025 {financial} yr with almost N1 trillion in income, a major leap from the N696.76 billion posted in FY 2024.
Within the just-released first half yr 2025 outcomes, Lafarge reported N516.977 billion in income, up 75% year-on-year, and 74% of 2024 full yr income.
Income adopted swimsuit: H1 working revenue spiked 144% to N192.27 billion, PAT rose 352% to N132.67 billion, and EPS jumped 352% to N8.22. Return on fairness soared to 50.2%, whereas web margins hit a formidable 25.7%.
The sturdy efficiency displays not simply pricing energy, however sturdy demand. Common worth per ton stood at N162,265, up 45.4% from N111,622 in H1 2024. Gross sales quantity additionally rose 20.3% YoY to three.19 million tons.
Commenting on the efficiency, Lolu Alade-Akinyemi, CEO of Lafarge Africa, acknowledged:
“Following our spectacular Q1 outcomes, our Q2 efficiency additional showcases the power of our staff, market positioning, operational effectivity, value administration, and dedication to worth creation.
We achieved wonderful {financial} ends in Q2, with Web Gross sales progress of 70%, Working Revenue up 153%, and Revenue After Tax of N84 billion up 248% vs the prior yr.
With this sturdy Q2 end result, we closed H1 with gross sales and working revenue progress of 75% and 144% respectively, pushed by quantity progress, operational excellence, modern product choices, and our proactive market initiatives.”
Trying forward, analysts at CardinalStone anticipate Lafarge to promote 6.13 million tonnes by year-end, at a median worth of N162,743. If that holds, full-year income may hit N998 billion inside hanging distance of the N1 trillion mark.
The inventory stays comparatively low cost, particularly with analysts projecting 2025 FY EPS may exceed N16, which suggests a ahead P/E nearer to 7.8x.
For context, which means buyers are paying simply N7.80 for each N1 Lafarge is anticipated to earn—a valuation that appears modest contemplating Nigeria’s increasing infrastructure and development sector, the corporate’s sturdy progress, increasing margins, and spectacular return metrics.
The outlook from administration reinforces this confidence.
“The constructing business is projected to maintain its progress trajectory, and we’re able to capitalise on quantity alternatives whereas specializing in value administration and sustainability,” stated CEO Lolu Alade-Akinyemii.
Additionally, its price-to-sales ratio of two.21 and 4% dividend yield strengthen the funding case. The value-to-sales ratio suggests buyers are paying simply over N2 for each N1 of income—affordable for a corporation with increasing margins and a powerful full-year earnings outlook.
WAPCO closed at N126 on Tuesday, notching a brand new 52-week excessive and capping an 80% year-to-date rally, following a 122% acquire in 2024.
Whereas its beta of 0.87 indicators decrease volatility, the inventory has outperformed on the again of margin growth, rising demand, and investor confidence in Nigeria’s infrastructure rebound.
Analysts now challenge Lafarge Africa could hit N1 trillion in income in FY 2025. With a powerful web margin of 26% in H1, this suggests potential web earnings of N260 billion if margins maintain translating to an estimated EPS of N16–N17.
Making use of a ahead P/E of seven.5x to 8x barely conservative given market cyclicality, yields a revised goal worth vary of N120–N135. This means the inventory is nearing full valuation, although not overpriced.
In the meantime, a price-to-sales ratio of two.21x and 4% dividend yield enhances its attraction. The corporate’s 2024 dividend reduce (N1.90 to N1.20) could reverse in 2025 if profitability sustains, boosting shareholder return.
General, Lafarge is basically sturdy and nonetheless has earnings tailwinds. However after an 80% rally, the upside is now restricted within the brief time period. Maintain, if you’re in.
Take into account shopping for on pullbacks beneath N110 for higher risk-reward particularly forward of full-year numbers and dividend steering.
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