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Dangote Cement saw its net profit increase by 173 percent in the first six months of 2025, surpassing the total earnings reported in the full year of last year, helped by a slower cost growth and stable naira.
The cement maker’s unaudited financials for the first half period of 2025 showed that after tax profit climbed to N520.45 billion, up from N189.90 billion a year earlier as improving macroeconomic conditions powered earnings to a record.
The Nigerian naira which is often riddled with volatility and unpredictability is becoming more stable, a condition that has improved margins of companies that are specifically exposed to foreign exchange risks.
Read also: Aliko Dangote retires as Chairman of Dangote Cement, Ikazoboh takes over
The rare stability of the naira which saw the currency hover around N1,500 to N1,600 per dollar in the half year helped decline net interest cost by 66.6 percent, leading to an FX gain of N45.7 billion from a loss of N201.3 billion in H1 2024.
That led to the firm which operates in at least 10 African markets having a net profit margin of 25.1 percent. A reduction in effective tax rate by 6.5 points to 28.7 percent also boosted margin.
Dangote Cement also grew its revenue by 17.7 percent year-on-year to N2.07 trillion, driven by a 46.2 percent YoY increase in average revenue per tonne in the Nigerian segment to N161,136.
Volume slows across Nigerian, Pan-African markets
Despite reporting a record earning result, volume declined across both the Nigerian and Pan-African market.
Volume slowed by 0.5 percent to 4.4 MMt in the Nigerian market, even more profound in the Pan-African market as it fell by 9 percent to 2.4 MMt due to political uncertainties in Senegal and South Africa, fiscal delays and credit tightening in Ethiopia, and weather-related disruptions in other markets.
“While Group volumes declined by 4.1% to 13.4Mt, due to softer demand in key markets, we remain encouraged by the growth in our export business. Export volumes from Nigeria increased by 18.2%, with 18 successful clinker shipments made to Ghana and Cameroon,” Arvind Pathak, Dangote Cement CEO said in a statement.
Read also: Dangote Cement bets on strategic projects to power growth
“This demonstrates the growing importance of our pan-African footprint and our ongoing commitment to regional trade and self-sufficiency.”
Cost of Goods Sold (CoGS) rose marginally by 2.4 percent, supported by a decline in costs of material consumed which fell 16.5 percent to N167.7 billion and a marginal increase in Fuel and power costs that saw a marginal rise of 3.3 percent to N387.2 billion.
“These improvements were likely driven by the reduced production volumes for the period, increasing adoption of alternative fuel sources under its green initiatives,” analysts at CardinaStone research said in a note.
Shares of Dangote Cement closed N494.50 on the Nigerian Stock Exchange (NGX), recording a 0.3 percent gain over its previous closing price of N493.00.
The cement manufacturer began the year with a share price of N478.80 and has since gained 3.28 percent on that price valuation, ranking it 107th on the NGX in terms of year-to-date performance.
