Dangote Cement Delivers Record ₦743bn Profit in Nine Months

as Operational Efficiency and Cost Management Drive Historic Growth

By Naija247news Business Desk
Lagos, October 28, 2025

Dangote Cement Plc, Africa’s largest cement producer and one of Nigeria’s most strategically important industrial conglomerates, has posted an exceptional financial performance for the first nine months of 2025, with profit after tax soaring by an astonishing 166.3 percent to ₦743.26 billion, up from ₦279.09 billion in the same period of 2024.

The financials, released through Cowry Asset Management’s research desk and analyzed by Naija247news, show a company that continues to expand profit margins despite the macroeconomic headwinds of high inflation, elevated interest rates, and foreign exchange volatility.

Revenue Growth Defies Macroeconomic Pressures

During the nine-month period ending September 30, 2025, Dangote Cement’s revenue rose to ₦3.15 trillion, representing a 23.2 percent year-on-year increase compared to ₦2.56 trillion recorded in the same period last year.

This remarkable growth comes against the backdrop of Nigeria’s tight monetary environment, marked by a Monetary Policy Rate (MPR) of 27 percent, headline inflation of 18.02 percent, and a relatively moderate 4.23 percent real GDP growth in Q2 2025, as reported by the National Bureau of Statistics (NBS).

Industry analysts believe that Dangote Cement’s ability to raise revenue under these circumstances underscores the company’s pricing power, operational scale, and resilient market demand both in Nigeria and across its African subsidiaries.

Improved Cost Efficiency and Strong Margins

Despite rising energy costs and logistics challenges that have affected industrial producers nationwide, Dangote Cement contained its cost of production to ₦1.29 trillion, a modest 4 percent increase from ₦1.24 trillion in 2024.

This tight cost discipline helped lift gross profit by 41.1 percent to ₦1.87 trillion, compared with ₦1.32 trillion in the prior year. The company’s gross margin climbed to 59.2 percent, up from 51.7 percent in 2024, reflecting a clear gain in production efficiency and input optimization.

Similarly, operating profit surged by 63.5 percent to ₦1.23 trillion, while operating margin expanded from 29.3 percent to 38.9 percent, highlighting a significant improvement in the company’s ability to convert sales into profits despite higher administrative and distribution expenses.

Finance Costs Halved as Net Profit Margin Soars

Dangote Cement also demonstrated strong financial management, with finance costs dropping by 36.6 percent to ₦286.04 billion, from ₦451.22 billion in the previous period. This reduction, coupled with a 164.7 percent surge in finance income to ₦77.1 billion, resulted in a 50.5 percent decline in net finance costs to ₦208.95 billion.

The impact of this financial efficiency was evident in the bottom line. Profit before tax jumped 156.2 percent to ₦1.04 trillion, while profit after tax more than doubled, reaching ₦743.26 billion. Consequently, the company’s net profit margin more than doubled to 23.6 percent, from 10.9 percent in 2024.

In line with these stellar results, earnings per share (EPS) surged from ₦16.55 to ₦43.82, representing a 164.8 percent growth, giving shareholders unprecedented returns amid a challenging economic climate.

Balance Sheet Strength and Capital Efficiency

As of September 30, 2025, Dangote Cement’s total assets stood at ₦5.74 trillion, compared to ₦6.40 trillion at the end of December 2024, reflecting balance sheet adjustments largely due to the optimization of working capital and improved cash conversion.

Shareholders’ equity rose 12 percent to ₦2.44 trillion, while total liabilities dropped 21.8 percent to ₦3.31 trillion, signaling a healthier capital structure and reduced leverage exposure.

The debt-to-equity ratio improved from 57.2 percent to 42.3 percent, underscoring the company’s strategic deleveraging, while asset turnover improved from 0.40x to 0.55x, demonstrating more efficient use of assets to generate revenue.

The report also recorded an impressive return on assets of 51.8 percent and return on equity of 91.5 percent, positioning Dangote Cement among the most profitable listed entities on the Nigerian Exchange Group (NGX).

Market Valuation: A Blue-Chip Cement Behemoth

Dangote Cement’s stock continues to trade at the upper band of its 52-week range, closing at ₦665 per share, against a low of ₦349.20, giving it a market capitalization of ₦11.22 trillion.

The stock currently trades at a price-to-earnings ratio of 15.18x with an earnings yield of 6.59 percent, and a price-to-book value of 4.61x, signaling continued investor confidence in its long-term fundamentals.

With 16.87 billion shares outstanding, the cement giant remains a heavyweight on the NGX, contributing significantly to market capitalization and sector performance metrics.

Corporate Actions and Outlook

Although no dividend or bonus issue was declared in the period under review, market watchers anticipate that the Board of Dangote Cement Plc may consider a robust final dividend payout at the end of the fiscal year, given the strong earnings trajectory and liquidity position.

The company’s strong balance sheet, improved cash flows, and resilient domestic demand profile continue to support its expansion into regional African markets. This performance also comes amid an increasingly competitive landscape, with BUA Cement Plc and Lafarge Africa Plc actively investing in production capacity and distribution network upgrades.

Economists project that continued investments in infrastructure, housing, and public works—combined with Dangote Cement’s pan-African strategy—will sustain profitability through 2026, even as the broader Nigerian economy navigates exchange rate volatility and fiscal reforms under the Renewed Hope Agenda of President Bola Ahmed Tinubu.

Naija247news Analysis: A Testament to Industrial Resilience

Dangote Cement’s nine-month financial performance reaffirms its position as not only a corporate leader but a symbol of Nigerian industrial resilience. The company’s ability to expand profit margins in a high-interest-rate environment demonstrates strategic agility, operational excellence, and disciplined financial governance.

As inflationary pressures persist and energy costs remain volatile, the cement giant’s cost management and regional export drive will likely determine the next phase of earnings growth.

For investors, Dangote Cement represents a rare blend of stability, scale, and profitability, with returns that continue to outperform both inflation and market averages.

📌 Editor’s Note: For content partnerships and collaborations, reach out via editor@naija247news.com

Reporting by Godwin Okafor, The Naija247news in Lagos, Nigeria.