Dangote Cement Grows Profit by 86% to N209bn in Q1

Dangote Cement Grows Profit by 86% to N209bn in Q1

Dangote Cement Plc grew profit by about 86% year on year to N209.2 billion in the first quarter of 2025, according to unaudited financial statement submitted on the Nigerian Exchange.

The cement company earnings growth was driven by higher prices in the Nigerian segment, slower cost growth, and lower FX losses, which offset the impact of volume declines, analysts said.

Details from the group financial scorecard showed that revenue rose 21.7% year on year to N994.7 billion, driven by a 60.6% increase in average revenue per tonne in Nigeria to N158,335.

This offset decline of 4.3% volume to 4.4MMt in Nigerian market and 10% volume drop to 2.4MMt in Pan-African markets, analysts at CardinalStone Securities said in their review note. Analysts also noted that the Pan-African segment recorded a 6.0% decline in average revenue per tonne to N132,235 in Q1-2025.

Volume softness in Nigeria was attributed to weaker consumer purchasing power, while election-related uncertainties in Senegal and South Africa, alongside liquidity constraints in Ethiopia, impacted Pan-African performance. The company’s costs of goods sold rose marginally by 2.1% year on year to N407.261 billion in Q1, a much slower increase compared to revenue growth.

This was largely due to a 2.7% decline in fuel and power costs, which settled at N177.2 billion, led by the company’s green initiatives and reduced production volumes during the period. Gross profit rose by 40.1% to N537.394 billion in the period, from N419.188 billion in the comparable period in 2024.

As a result, the gross margin expanded from by 7.8% to 59.1%. The cement company’s operating expenses grew by 7.7% year on year to N205.48 billion, tamed by a 1.1% decline in haulage expenses which printed at N124.5 billion. In Q1, Dangote Cement net interest costs declined 14.1% year on year to N96.024 billion from N111.83 billion in the comparable period.

The moderation in net finance cost of the cement company was aided by a steep rise in finance income. Details from the company’s unaudited financial showed that finance income grew by 197.2% to N33.4 billion.

Also, a significant reduction in foreign exchange priced liabilities eased pressures on the cement company net finance costs. Specifically, Dangote Cement reported a 72.6% reduction in FX losses to N17.5 billion in Q1. These strong performances masked the 87.1% rise in interest expense which printed at N110.3 billion. The company’s pretax profit grew by 87.5% year on year to close Q1 at N311.974 billion from N166.404 billion in the equivalent period in 2024.

With more than 91% increase in tax expenses, Dangote Cement closed first quarter with N209.245 billion net income, up by 85.7% from N112.674 billion in the equivalent period in 2024. The results showed that earnings per share climbed by 83.9% to N12.29 from N6.68 12 month earlier. #Dangote Cement Grows Profit by 86% to N209bn in Q1#

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