Dangote Cement Falls Below N9trn as Investors Exit Positions

Dangote Cement Falls Below N9trn as Investors Exit Positions

Dangote Cement Plc’s market value fell below N9 trillion as investor sentiment dropped despite an impressive earnings performance in the first half of 2025. Trading data obtained from the Nigerian Exchange showed that Dangote Cement share price declined to N520 from N577 as 2.598 million units valued at N1.350 billion were traded in the local bourse.

The selloffs dragged the cement company’s market down to N8.774 trillion. Dangote Cement recently recovered from sell pressure to hit a new 52-week in the Nigerian market. The company delivered a strong H1 2025 result, with earnings rising to N520.5 billion, way ahead of its 2024 performance, analysts said in a review note.

In its equity update, CardinalStone Securities Limited explained that Dangote Cement first half earnings result was driven by improved pricing in Nigeria, modest cost growth, and a swing to FX gains, which helped offset continued pressure across Pan African operations.

Analysts said the cement price is expected to remain elevated, while Nigerian volumes should benefit from rising public and private sector demand, alongside growing export activities.

Dangote Cement margins are also likely to stay firm, supported by lower material costs, likely reflecting better procurement, input efficiencies, and continued progress on energy-saving initiatives.

CardinalStone Securities Limited highlighted that the phased rollout of an additional 1,600 CNG-powered trucks is set to reduce logistics costs further in the coming quarters.

“We now expect average gross and earnings before interest, tax, depreciation, and amortisation (EBITDA) margins of 59.5% and 47.5%, respectively, over the forecast horizon, up from 59.1% and 46.9% apiece previously.”

CardinalStone Securities Limited forecasted DANGCEM’s gross margin to settle at 59.5% for 2025, up from the previous estimate of 58.9%, reflecting a notable step-up from the three-year historical average of 55.8%.

Analysts said the margin resilience is driven by structural efficiencies across the business, including replacing costly FX input with local substitutes and deepening alternative fuel adoption.

The recent improvement in Thermal Substitution Rate (TSR) to 9.8% (from 8.3% in H1’24) is already translating to a moderation in energy cost escalation, and with 11 out of 17 alternative fuel projects now commissioned, further cost-saving traction is expected in H2’25 and beyond, analysts said.  #Dangote Cement Falls Below N9trn as Investors Exit Positions Liquidity Deficit Keeps Money Market Rates Elevated