Afrimat has reported a 20.3% increase in group revenue for its financial year ended 28^th February 2026 to R10 billion from R8.3 billion, with a 9.6% increase in its operating profit to R523.7 million (FY2025: R477.7 million).

The results follow the successful integration of the Lafarge acquisition, which is performing well, says the multi-commodity, mid-tier mining company.

Cash generated from operations amounted to R831.4 million (FY2025: R571.6 million) – although this is below Afrimat’s customary levels, the work done during the financial year puts cash generation on a firmer footing for the future, it says.

“The financial focus going forward will be to assist businesses in driving cash generation and to use that cash to reduce debt,” says Group CEO Andries van Heerden. Afrimat’s cash flow from operating activities is also beginning to recover.

The company’s construction materials business recorded a 20.7% increase in revenue, from R4 552.7 million to R5 496.9 million. The aggregates segment delivered an increase of 11.2% and cement an increase of 54.3%. The aggregates segment’s operating profit increased by 24%, resulting in an operating profit margin of 17.7% (FY2025: 15.8%).

Afrimat says significant progress was made in its aggregates business during the second half of the financial year which included maintenance, repairs, and operational improvements to the quarries from the Lafarge acquisition.

The FY2026 margin for the construction materials business (including cement) improved to 9.3%, impacted by the negative contribution from cement.

Furthermore, quarries that delivered sub-optimal margins are being addressed, with initiatives underway to bring their performance in line with the overall Aggregates margin.

Revenue growth was driven by a wider presence across South Africa and continued orders from road, construction and rail projects as well as some provincial infrastructure maintenance. Non-core brick and block and readymix businesses were sold, as well as non-core properties.

Both production and sales in the cement business continued their upward trajectory, and their commercial strategy remains effective, as evidenced by growing market share in all segments. It contributed revenue of R1 560,9 million and an operating loss of R185,1 million.

Van Heerden says that clinker production was 18.8% higher than last year. Cement sales volumes increased, delivering 36.2% sales growth, while resolving inherited operational challenges and improving revenue by 54.3%. With substantial remedial work and maintenance properly undertaken to repair previous neglect (a total of R271.6 million was spent in FY2026 on repairs and maintenance), losses in the Cement business have been stemmed with strategic alternatives under consideration.

He adds that the group is aware of excellent assets in its portfolio and intends to continue evolving its strategy to ensure the best and most sustained return on invested capital over time, taking the ever-changing macro environment into account. For the coming year, the focus will be on reducing debt.