Profit Surges for Dangote Cement Despite Slight Drop in Sales Volume

BY Mercy Omotosho
February 28, 2026
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Africa’s largest cement producer recorded a significant rise in profitability in 2025, with net earnings doubling from the previous year even though sales volume declined marginally.

The company’s financial statements revealed that revenue increased by 20.3 per cent to N4.3 trillion, driven largely by price adjustments in the cement market despite a small drop in units sold from 27.7 million to 27.5 million.

The company attributed the strong earnings performance to improved revenue generation and a substantial reduction in finance expenses. Profit before tax grew by 109.2 per cent to N1.5 trillion, while net profit exceeded N1 trillion. A key factor behind the profit surge was the sharp drop in finance costs, which fell to N351.5 billion, alongside the absence of foreign exchange losses that had weighed on earnings in the prior year.

Cement production and bagging increased by 5.8 per cent to 55 million, meaning the firm operated at roughly half of its installed capacity.

Exports also strengthened, with cement and clinker shipments rising by 18.6 per cent. The company reported dispatching 34 shiploads of clinker to Cameroon and Ghana and emphasised its strategy of positioning Nigeria as a regional production hub rather than relying on imports.

Operational efficiency contributed to profitability, with production costs declining even as administrative and distribution expenses edged higher. The company’s EBITDA margin stood at 46 per cent, reflecting strong core profitability.

Management reiterated plans to expand export capacity through terminals in Apapa and Onne and pursue a target of 10 million tonnes of combined output.

In shareholder returns, the board proposed a final dividend of N45 per share, representing a 50 per cent increase over the previous year’s payout and amounting to an estimated N759.3 billion distribution. Return on equity improved to 38.7 per cent from 23.1 per cent, underscoring enhanced value creation for investors despite broader market challenges.