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HBM Nigeria Plc recorded a 57 per cent increase in profit after tax (PAT) to N208.35 billion for the first half of 2026, supported by higher cement sales, stronger production volumes, improved operating efficiency and tighter cost management, as the building materials manufacturer outlined plans for additional capacity expansion to sustain future growth.
The unaudited financial results for the six months ended June 30, 2026 showed that revenue rose by 31 per cent to N678.41 billion from N516.98 billion in the corresponding period of 2025, while operating profit increased by 51 per cent to N290.94 billion from N192.27 billion. Operating margin also improved to 43 per cent from 37 per cent a year earlier, reflecting gains from operational stability and improved distribution efficiency.
The performance was underpinned by an 11 per cent increase in sales volumes, according to the company, with cement remaining the dominant contributor to revenue as demand across its key markets remained resilient. Revenue from cement sales accounted for more than N661.5 billion of total revenue during the period.
Profit before tax (PBT) rose to N317.73 billion from N199.74 billion in the corresponding period of last year, while earnings per share increased to 1,293 kobo from 824 kobo, indicating stronger returns for shareholders.
Commenting on the performance, the Group Managing Director and Chief Executive Officer, Lolu Alade-Akinyemi, said the results reflected the company’s operational discipline and strategic execution. “Our H1 2026 performance demonstrates the continued strength of our business and the successful execution of our strategic priorities. These results reflect disciplined cost management, operational excellence, and prudent financial stewardship. We are focused on further improving supply reliability, advancing our cost leadership agenda, driving innovation, accelerating our sustainability initiatives, and maintaining the highest standards of health and safety.”
He added that HBM Nigeria would continue leveraging the industrial and technical capabilities of its parent company, Huaxin Building Materials Ltd, to improve operational efficiency and strengthen manufacturing capacity across its operations.
As part of that strategy, the company disclosed that it has commenced engineering design for a third production line at its Calabar plant. The proposed integrated cement facility will add three million tonnes of annual production capacity, with the project expected to be completed within 12 months after construction begins.
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The planned Calabar expansion comes weeks after the company announced that work was progressing on the expansion of its Ashaka cement plant in Gombe State, where an additional production line is expected to increase annual installed capacity by 4.5 million tonnes when commissioned in January 2027. Speaking during a recent media engagement in Lagos, Alade-Akinyemi said the ongoing investments were intended to strengthen the company’s long-term earnings capacity while creating additional value for shareholders. “For shareholders, it is of great benefit because when you expand your capacity, when you focus on efficiency, when you do your business sustainably, what will happen? It means more money. It means more profits. It means more shares.”
He said the expansion programme would improve product availability across the country, widen the company’s market reach and support higher profitability over time. The increased production capacity would also create employment opportunities and stimulate economic activity within the company’s value chain. “We’ll be able to employ more people, to develop more local contractors. The local content, I believe, will also expand.”
HBM Nigeria, formerly Lafarge Africa Plc, officially adopted its new corporate identity following the acquisition of the company’s controlling stake by China’s Huaxin Building Materials Group. The company said the new ownership structure provides access to engineering expertise, manufacturing technology and operational capabilities expected to improve efficiency and accelerate expansion projects.
Alade-Akinyemi noted that one of the immediate benefits of the acquisition was the planned expansion of the Ashaka cement plant, explaining that Huaxin manufactures cement production equipment internally, enabling faster project execution and reducing implementation timelines. Beyond financial performance, the company said it remains focused on sustainability and alternative fuel development as part of its long-term operating strategy.
The financial statements also showed that the company maintained a strong balance sheet during the period. Total assets rose to N1.31 trillion as of June 30, 2026 from N1.21 trillion at the end of December 2025, while shareholders’ equity increased to N805.70 billion from N694.00 billion over the same period.
Capital expenditure also accelerated significantly as the company invested N141.47 billion in property, plant and equipment during the first six months of the year, compared with N28.87 billion in the corresponding period of 2025, reflecting continued investment in production capacity and operational infrastructure.
The company said Nigeria’s cement market remains supported by infrastructure development, urbanisation and construction activities despite a challenging global operating environment. It said improving macroeconomic conditions are expected to sustain demand across its major customer segments, while management will continue pursuing volume growth alongside disciplined cost management to preserve profitability.
