HBM Nigeria posts ₦208bn H1 profit, begins plan for new Calabar cement line

HBM Nigeria Plc has reported a 57 per cent increase in profit after tax for the first half of 2026, posting earnings of ₦208 billion on the back of stronger sales, higher production volumes and improved operational efficiency.

The cement manufacturer, formerly known as Lafarge Africa Plc, announced on Monday that revenue rose by 31 per cent during the six-month period, driven by an 11 per cent growth in sales volume, enhanced operational stability and improved distribution efficiency.

The company also recorded a 51 per cent increase in operating profit to ₦291 billion, while its operating margin improved to 43 per cent from 37 per cent recorded in the corresponding period of 2025.

Group Managing Director and Chief Executive Officer, Lolu Alade-Akinyemi, attributed the performance to disciplined cost management, operational excellence and prudent financial management.

He said the company would continue to strengthen supply reliability, drive innovation, improve cost efficiency and accelerate its sustainability initiatives while maintaining high health and safety standards.

As part of its expansion strategy, Alade-Akinyemi disclosed that HBM Nigeria has commenced engineering design for a third production line at its Calabar plant.

According to him, the proposed three-million-ton integrated cement facility is currently undergoing the required development processes and is expected to be completed within 12 months after construction begins.

He said the company would leverage the technical expertise of its parent company, Huaxin Building Materials Ltd, to improve operational efficiency and sustain business growth.

Looking ahead, the HBM Nigeria boss expressed optimism about the outlook for Nigeria’s cement industry, citing continued infrastructure development, rapid urbanisation and resilient construction activities despite global economic uncertainties.

He added that the company would continue to pursue volume growth opportunities while maintaining cost discipline and operational efficiency to strengthen profitability and deliver long-term value to shareholders and other stakeholders.