Lafarge Africa Plc has emerged as a focal point in the Nigerian stock market, with its robust financial performance and strategic shareholder returns attracting both short-term and long-term investors.
The cement giant’s share price has held steady at N73.80, marking a 5.5% increase since the start of the year, even as other stocks have struggled amid economic headwinds. This stability reflects investor confidence, driven by Lafarge’s impressive earnings report and commitment to delivering value to shareholders.
Lafarge Africa’s recently announced 2024 financial results revealed remarkable growth. Revenue surged to N696.76 billion, a 72% jump from 2023, driven by rising demand for cement amid Nigeria’s infrastructure expansion. The company’s pretax profit soared by 89% to N152.26 billion, highlighting improved cost efficiencies and operational strength.
Net income also climbed significantly, rising 96% to N100.15 billion, underscoring the company’s ability to convert top-line growth into substantial bottom-line gains. These figures position Lafarge Africa as a dominant player in Nigeria’s industrial sector.
The market’s positive response to these results reflects confidence in Lafarge’s long-term growth potential. However, investors are now focusing on the company’s proposed dividend, which could further influence market sentiment.
Lafarge Africa has proposed a final dividend of N1.20 per share, amounting to N19.3 billion. If approved at the company’s Annual General Meeting (AGM) on April 25, 2025, the payout will reinforce Lafarge’s reputation as one of the most shareholder-friendly stocks on the Nigerian Exchange (NGX), potentially driving increased demand in subsequent trading sessions.
Shareholders who hold Lafarge stocks before March 28, 2025, will qualify for the dividend payout—a move likely to incentivise long-term holding and support price stability.
For potential investors, Lafarge’s strong financial standing and consistent returns present an appealing opportunity. The Nigerian cement industry is projected to grow from $3.31 billion in 2023 to $3.89 billion by 2028, with infrastructure projects, urban expansion, and real estate developments driving increased demand. Lafarge is well-positioned to capitalise on this growth.
Additionally, the company’s investment in alternative fuel facilities and cost-saving initiatives reflects a strategic push toward sustainability and improved profit margins.
Analysts have set an average price target of N80.18 for Lafarge Africa, suggesting potential upside from current levels. Projections range from a low of N49.75 to a high of N104.28, indicating a wide spectrum of expectations based on market conditions and company performance.
As trading resumes, investors will be closely watching Lafarge Africa’s stock, weighing its recent achievements and future potential in Nigeria’s evolving economic landscape.
