Lafarge Africa Boosts Dividend Fivefold After Strong Earnings Growth

Lafarge Africa has proposed a major increase in shareholder returns after reporting strong financial performance, with the board recommending a dividend of 600 kobo per share for the latest financial year — five times higher than the previous payout.

The proposed distribution represents a total dividend commitment of roughly N96.6bn, up sharply from about N19bn in the prior year, reflecting robust revenue expansion and improved operational performance.

Company filings show that revenue rose significantly during the period, supported by higher sales volumes, improved plant stability, and stronger distribution efficiency. Operating profit more than doubled, while margins expanded, indicating successful cost management and productivity gains across operations.

Net earnings also recorded strong growth, driven by sustained demand and efficiency improvements throughout the company’s production network.

Management said the results underscore the effectiveness of its strategic priorities, which focus on operational reliability, disciplined cost control, and value creation for shareholders.

Executives noted that surpassing the one-trillion-naira revenue threshold marked a significant milestone for the company and reflected the scale of its operational turnaround.

Looking ahead, leadership said collaboration with its new majority investor, China-based Huaxin Building Materials, is expected to strengthen technical expertise, improve capital allocation, and support expansion opportunities in the Nigerian construction market.

The company said it intends to maintain a cautious but flexible approach to investment and cost management, positioning itself to benefit from infrastructure demand and housing development trends.

The proposed dividend remains subject to shareholder approval at the company’s forthcoming annual meeting.