This surge follows the company's third-quarter 2024 financial report, which revealed a staggering 101% rise in net sales, climbing from N91 billion in Q3 2023 to N183 billion in Q3 2024.
Additionally, Lafarge Africa reported a pre-tax profit of N47 billion, marking an impressive 717% year-over-year increase from the N5 billion recorded in the same quarter last year, resulting in a total pre-tax profit of N94 billion for the first nine months.
Since the announcement of these results on October 29, 2024, the stock has seen bullish momentum, rising over 31% and surpassing the N50 threshold during early trading on November 19, 2024.
Beginning the year at N31.50, Lafarge Africa initially benefited from moderate bullish trends from the previous year. By the end of January, the stock had reached N36 after a brief spike to N51, before closing lower.
In February, the bullish trend diminished, leading to a decline that saw the stock close at N31.95, with a trading volume of 75 million shares. March brought a temporary resurgence in bullish activity, but this was short-lived, as April concluded with another decline.
From May onward, Lafarge Africa entered a phase of slow but steady upward consolidation, characterized by consistent bullish price movements that allowed the stock to close above N38 by the end of October.
However, following the financial results announcement on October 29, 2024, investor enthusiasm surged, driving the stock to new heights with a gain of over 31% and a closing price above N40 during the week of November 10.
As of the early trading hours on November 19, the stock has surged an additional 20% week-to-date, with a trading volume of 18 million shares, further enhancing its year-to-date performance to over 60%.
Lafarge Africa's recent initiatives and performance provide insight into the growing positive sentiment surrounding its stock.
In the first quarter of 2024, the company launched Water-shield Cement, aimed at mitigating water permeability issues in buildings and enhancing structural integrity. This product is applicable for both new construction projects and repair work, such as addressing rust stains or water seepage, as the company maintains its emphasis on core product lines.
This strategic focus is evident in the financial results for the nine months ending September 30, 2024, which reported a remarkable 66% increase in sales year-over-year, climbing from N289 billion to N479 billion. Cement sales remained the primary revenue driver, contributing over 95% of total income, while aggregates and concrete accounted for the remainder.
Additionally, Lafarge Africa plans to launch Supa Whyte, a gypsum plaster (POP) product intended for decorative uses, representing another effort to expand its construction product range, although its market acceptance is yet to be determined.
These advancements, coupled with the company's robust financial performance, are likely contributing to heightened investor interest in its stock.
Lolu Alade-Akinyemi, CEO of Lafarge Africa, highlighted the company’s performance, stating, “We achieved strong top-line growth of 101% in Q3 and 66% for the nine months ended September 2024.”
He further added, “Profit after tax improved, driven by operational efficiency despite heightened cost pressures. Our results were supported by strong output from improved plant stability, enhancements in supply chain operations, and our ongoing cost management initiatives.”