Afrimat has posted its results for the six months ended 31^st August 2025, having fully integrated the recently acquired Lafarge SA assets into its structures with “good progress being made on the turnaround of these businesses,” says Group CEO Andries van Heerden.

Group revenue increased by 29,9% from R4,1 billion to R5,2 billion, supported by the integration of the Lafarge businesses and overall volume and sales increases from its iron ore and cement segments while its operating profit increased by 29,8% to R379,8 million (August 2024 (restated) R292,6 million) with an operating profit margin of 7,1%.

Afrimat’s finance costs increased to R148,4 million with its net debt to equity position at 52.5%.

The Group says the first quarter reflected a continuation of the prior year’s challenges however, by the second quarter, the benefits of improvements implemented began to gain momentum with a significant increase in local iron ore sales coupled with satisfactory international sales, having resulted in an overall strong performance from its iron ore component.

In its aggregates segment, its focus within its quarries acquired led to an improvement in aggregate sales volumes, accompanied by a corresponding increase in market share which was visible towards the end of the second quarter and contending with excessive rainfall in Q1.

Van Heerden says the turnaround of the ex-Lafarge cement factory in Lichtenburg gained momentum towards the end of the reporting period.

After the investment of time and resources in integrating the Lafarge acquisition, fixing previously neglected Lafarge assets and turning the Nkomati business around, profit after tax improved by 78,9% to R173,5 million (August 2024 (restated): R96,9 million) which translated into improved earnings and headline earnings per share of 102,7 cents per share and 101,9 cents per share respectively (August 2024 (restated): 58,3 cents per share and 53 cents per share respectively).

The aggregate and ash components of its construction materials segment were affected by excessive rainfall in the northern regions of SA during Q1 which limited orders, says the Group. During Q2, there was an improvement in sales volumes with operational efficiency at the former Lafarge quarries leading to previously lost market share being regained.

Afrimat’s cash generated from operations improved significantly to R357,7 million compared to cash used in operations of R131,4 million in the previous comparable period.

An interim gross dividend of 20 cents per share (August 2024: 10 cents per share) for the period was declared.