Lafarge Africa Dips by 6.5%, Market Anticipates Q2 Earnings Catalyst
Cement company Lafarge Africa Plc lost about 6.5% of its market value as investors’ sentiment shifted negative, extending its four-day loss to about 9%. Lafarge Africa, with Ticker: WAPCO, closed at N290 per share on Thursday, a 6.45% decline from its opening price of N310.
The cement company’s share price fell as investors traded 2.418 million units, valued at about N697.5 million in the local bourse. Despite the negative market trend, Lafarge Africa’s share price had remained relatively stable.
The market value of Lafarge Africa’s 16.07 billion outstanding shares was N4.671 trillion on the local bourse at the close of trading on Thursday. This is about 18% below its highest value attained in the market over the last 52 weeks.
Stock market analysts anticipate that the company’s Q2 earnings will drive fresh re-rating similar to the experience in the first quarter of 2026. Transactions are currently based on sentiment, past earnings recorded and expectations.
In Q1, Lafarge Africa delivered an impressive performance with Revenue increasing by 34.8% year-on-year (y/y) to N334.9 billion.
The strong topline growth was broad-based across all product categories, supported by both higher pricing and increased sales volumes. Cement revenue, which remains the company’s primary earnings driver, rose by 35.0% y/y to ₦327.6 billion.
Revenue from aggregates and concrete expanded by 28.6% y/y to ₦6.9 billion, while other product categories increased by 6.8% y/y to ₦300.0 million.
The robust revenue growth, coupled with a relatively moderate increase in operating costs and a significantly improved financial position, drove Profit Before Tax (PBT) up 104.0% y/y to N149.1 billion.
Stockbrokers anticipate Lafarge Africa’s growth momentum to remain strong, underpinned by favourable pricing dynamics and continued volume expansion.
“We forecast average cement prices to increase by 30.0% y/y to ₦203,852 per tonne in FY 2026, while cement sales volumes are projected to rise by 10.8% y/y to 7.5 million metric tonnes.
“Consequently, we estimate Revenue will grow by 45.7% y/y to ₦1.6 trillion in FY 2026, compared with ₦1.1 trillion recorded in FY 2025.
“We also anticipate sustained earnings growth, supported by strong Revenue expansion, a moderation in cost pressures, and improved Net Finance Income. As a result, we forecast Profit Before Tax (PBT) to increase by 43.9% y/y to ₦681.9 billion in FY 2026”, Stockbrokers said in an equity review.
