Dangote Cement Plunges by 10% to N7.289trn in Latest Selloff

Dangote Cement Plunges by 10% to N7.289trn in Latest Selloff

Dangote Cement Plc.’s market value plunged by 10% in the equities market to close at approximately N7.3 trillion on Friday, according to data from the Nigerian Exchange. The cement company plunged on the back of 1.448 million shares valued at NN628.916 million traded by sell-side actors.

The single transaction that occurred on Friday dragged the company’s market value down by about N810 billion to N7.289 trillion, now ranking behind BUA Foods which is valued above N7.5 trillion.

At the current price, Dangote Cement is trading at about 27% of its highest value attained in the last 52 weeks on the Nigerian Exchange. The cement company has lost its top valuation laurel following successive selloffs in the local bourse due to pressures on earnings and rising borrowings.

Meanwhile, in its first quarter earnings scorecard, Dangote Cement delivered an impressive earnings performance as macroeconomic tensions begin to ease.

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 statements submitted on the Nigerian Exchange.

The cement company’s 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 amidst a decline in volume.

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.

With FX losses slowed down, Dangote Cement closed the first quarter with N209.245 billion in net income, up by 85.7% from N112.674 billion in the equivalent period in 2024. #Dangote Cement Plunges by 10% to N7.289trn in Latest Selloff #Dangote Cement Grows Profit by 86% to N209bn in Q1