HBM Nigeria Posts ₦272bn Profit in Nine Months, Up 31% Despite Q3 Maintenance

HBM Nigeria Plc, formerly Lafarge Africa Plc, a leading provider of innovative building solutions and manufacturer of a wide range of cement, ready mix, mortar and Plaster of Paris brands has declared a Profit After Tax (PAT) of N272billion representing a 31% growth in its 9M 2026 performance. Net sales grew by 19% in 9M 2026, driven by volume growth, enhanced operational stability and improvement in distribution efficiency. Operating profit during the period grew by 28% to close at N383billion and was supported by healthy top-line growth and sustained efficiency gains across the business while operating margin rose to 41% from 38% in 9M 2025.

The GMD/CEO of HBM Nigeria Plc, Lolu Alade-Akinyemi, said: “Our 9M 2026 results confirm that we remain firmly on track to deliver our full-year objectives. Net Sales grew 19% year-on-year to ₦928 billion, Operating Profit rose 28% to ₦383 billion, and Profit After Tax increased 31% to ₦272 billion. This performance reflects sustained volume growth, improved distribution efficiency, and disciplined cost management across the business.

Third-quarter performance was moderated by planned extensive maintenance at our existing plants to correct restriction of output and unlock effective capacity accessibility. As a result, Q3 closed with a Net Sales of ₦250 billion and Profit After Tax of ₦64 billion, a decline of 5% and 15%, respectively, compared to the same period last year. The maintenance work strengthens the reliability, efficiency and increases utilization of our existing assets; as we enter Q4, traditionally a period of stronger demand, we are well positioned to capture the demand now and in the future.

Further, Alade-Akinyemi stated that the company’s strategic priorities remain centered on enhancing supply reliability, reinforcing cost leadership, fostering innovation, advancing sustainability initiatives, and upholding world-class health and safety standards across our operations.

The company leverages the industrial and technical expertise of Huaxin Building Materials Group Co., Ltd to drive operational excellence and improve efficiency across the business and continues to exercise disciplined capital allocation, maintain rigorous cost control, and invest selectively in opportunities that support our long-term growth strategy.

On the business outlook for the rest of the year, Alade-Akinyemi stated that the expansion of the Sagamu, Ogun State (3.5MTPA) and Ashaka, Gombe State (2MTPA) plants are on track and at an advanced stage, expected to be delivered in Q1 2027. He also announced that HBM Nigeria has commenced the engineering design for its third production line at Calabar, a state-of-the-art 3-million-ton integrated cement facility. The project is progressing through the requisite development processes, with completion expected within 12 months following commencement of construction.

HBM Nigeria will continue to focus on capturing volume growth opportunities while maintaining disciplined cost management and operational excellence to strengthen profitability and preserve margins. Supported by a resilient operating platform, a strong balance sheet, and disciplined execution of our strategic priorities, the company is well positioned to create sustainable long-term value for its shareholders and all its stakeholders.