Innovative building solutions and manufacturer of a wide range of cement, ready mix, mortar and Plaster of Paris brands- HBM Nigeria Plc (a member of Huaxin Building Materials Group Co., Ltd), formerly Lafarge Africa Plc, has reported significant improvement in net profit, compared to revenue for the period, in what is linked to healthy top-line growth and sustained efficiency gains across the business while operating margin rose to 41% from 38% in 9M 2025.
Net sales grew by 19% in the first nine months of 2026, driven by volume growth, enhanced operational stability and improvement in distribution efficiency, with Operating profit rising by 28% to N383 billion.
A statement by Adewunmi Alode, General Counsel & Company Secretary, quoted Lolu Alade-Akinyemi, Group Managing Director/Chief Executive Officer of HBM Nigeria Plc as saying the “results confirm that we remain firmly on track to deliver our full-year objectives”
The performance, he continued, “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,” he added.
Alade-Akinyemi stressed 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.
HBM Nigeria, the statement continued, 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 3.5 million tons per annum, and Ashaka, Gombe State 2MTPA) plants are on track and at an advanced stage, ahead of Q1 2027 delivery date.
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 said it 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.
