…Dangote Cement Nigerian operations delivered strong performance, with revenue rising by 38.6% y/y to N746.28 billion, accounting for 66.6% of total revenue
…The company announced Mr. Emmanuel Ikazoboh as the new Chairman of the Board.
MON JULY 28 2025-theGBJournal| Dangote Cement (DANGCEM) earnings per share (EPS) climbed 303.5% y/y to N18.45 in Q2-25 , driven by a 39.6% y/y increase in operating profit and a sharp 96.5% y/y decline in net finance costs.
Group volumes declined by 4.1% to 13.4Mt, due to softer demand in key markets, but Arvind Pathak, Chief Executive Office of the largest cement producer in Africa, said the company remains encouraged by the growth in its export business.
However, Export volumes from Nigeria increased by 18.2%, with 18 successful clinker shipments made to Ghana and Cameroon. This demonstrates the growing importance of Dangote’s pan-African footprint and its ongoing commitment to regional trade and self sufficiency.
Indeed, Dangote Cement Nigerian operations delivered strong performance, with revenue rising by 38.6% y/y to N746.28 billion, accounting for 66.6% of total revenue.
This growth was driven primarily by a 33.9% y/y increase in the average cement price to N163,838.42/t, alongside a modest 3.5% y/y increase in sales volume to 4.56Mt.
In contrast, revenue from Pan-African operations declined by 15.6% y/y to N359.47 billion (33.4% of total revenue), reflecting an 8.2% y/y drop in average cement price to N140,528.15/t and an 8.1% y/y decline in volumes to 2.56Mt.
Management attributed the weaker performance in Pan-Africa to post-election disruptions in Senegal and South Africa, as well as ongoing liquidity challenges in Ethiopia.
Meanwhile, DANGCEM’s aggregate revenue grew by 14.2% y/y to N1.08 trillion in Q2-25 (H1-25: +17.7% y/y to N2.07 trillion), supported by a 15.9% y/y increase in the average price per tonne to N158,466.60/t, which offset a 1.4% y/y decline in group volumes to 6.80 million tonnes (Mt).
On a quarter-on-quarter basis, group revenue advanced by 8.3%.
Gross margin expanded by 441bps y/y to 63.5% (H1-25: +567bps to 63.7%), as cost of sales (ex-depreciation) rose by just 1.9% y/y, lagging topline growth. We attribute the slower increase in COGS to the increased use of alternative fuels & raw materials, lower energy costs, and relative FX stability.
Consequently, raw material costs fell 21.4% y/y, accounting for 20.5% of COGS, while energy costs—comprising 53.4% of COGS—grew moderately by 8.8% y/y.
Similarly, the group EBITDA margin expanded by 714bps y/y to 44.9% in Q2-25 (H1-25: +781bps y/y to 45.6%), even as operating expenses (ex-depreciation) increased by 10.9% y/y to N224.22 billion.
Notable drivers of OPEX included higher staff costs (+13.9% y/y), CSR spending (+10.1x y/y), and other operating expenses (+74.2% y/y).
Importantly, we highlight that haulage expenses, which account for 57.6% of OPEX, declined 7.0% y/y, reflecting both the impact of stable diesel prices and the increased deployment of CNG-powered trucks.
Elsewhere, net finance costs declined by 96.5% y/y to N6.88 billion, buoyed by a 154.9% y/y rise in finance income to N34.16 billion and a N63.21 billion FX gain, which offset the 46.2% y/y rise in interest expenses (N104.18 billion).
In H1-25, net finance costs declined by 66.6% y/y to N102.91 billion.
As a result, profit before tax rose by 230.3% y/y to N418.06 billion, while profit after tax jumped 303.0% y/y to N311.21 billion, following a tax charge of N106.85 billion.
”Our strategic priorities remain focused on long-term value creation,” said Arvind Pathak,” while commenting on the performance.
”We have made significant progress in further strengthening our cost architecture. During the period, we began the phased delivery of 1,600 additional CNG-powered trucks, which will significantly reduce our logistics costs and enhance environmental
efficiency.”
In other development, the company announced Mr. Emmanuel Ikazoboh as the new Chairman of the Board.
”His extensive experience in corporate leadership and governance makes him exceptionally well-positioned to guide the company into its next phase of growth and strategic execution,” the company said.
Ms. Mariya Dangote to the Board also was appointed into the Board.
”Her appointment signals a new era of continuity and innovation. Together, we are confident that this leadership team will drive sustainable growth and unlock new opportunities.
As we move into the second half of the year, we remain focused on driving innovation, strengthening our pan-African operations, and delivering sustainable
returns to our investors,” Dangote management said.
Management has scheduled a conference call for analysts and investors for Thursday 31st July at 15.00 Lagos/15:00 UK time
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