TUE OCT 28 2025-theGBJournal| Nigerian cement maker Dangote Cement plc reported strong Q3-2925 earnings performance on Tuesday, buoyed by its Nigerian operations.
Dangote Cement’s Group revenue rose by 23.2 percent to N3,154.8 billion, driven by what the company said is ”proactive management initiatives and resilient demand across our markets”
Aggregate revenue expanded by 35.3% y/y in Q3-25 (9M-25: +23.2% y/y), reflecting a 32.7% y/y increase in the average price per tonne to N157,573.32 and a modest 2.0% rise in group volumes to 6.87 million tonnes.
On a quarter-on-quarter basis, revenue advanced slightly by 0.6%.
The Nigerian operations continued to anchor performance, with revenue rising by 36.8% y/y and accounting for 65.4% of total revenue.
This was driven by a 33.8% y/y increase in the average cement price to N173,462.32 per tonne and a 2.2% y/y increase in sales volumes to 4.26 million tonnes (9M-25: +0.4% y/y to 13.21Mt).
Pan-African operations also delivered a robust performance, with revenue growing by 30.7% y/y (34.6% of total revenue).
The region’s performance was supported by a 27.3% y/y rise in average cement prices to N127,298.10 per tonne and a 2.7% increase in volumes to 2.94 million tonnes (9M-25: -5.0% y/y to 7.94Mt), reflecting stronger output in Tanzania, which offset softer sales in Senegal, South Africa, and Ethiopia.
Meanwhile, gross margin expanded by 981bps y/y to 64.1% (9M-25: +698bps y/y to 63.8%), with cost of sales (excluding depreciation) rising by 6.2% y/y, well below revenue growth.
The growth in costs was largely driven by a 13.6% y/y rise in energy expenses, which offset the decline in raw material (-11.6% y/y) and plant maintenance (-7.9% y/y) costs.
Overall, these trends highlight the company’s ongoing success in implementing cost-efficiency initiatives through the increased use of alternative fuels and raw materials, improved energy optimization, and the benefits of relative foreign exchange stability.
Operating leverage remained strong as the group’s EBITDA (at to N1,428.2 billion) and EBIT margins rose by 14.28 ppts y/y and 13.56 ppts y/y to 44.6% and 38.4%, respectively, in Q3-25 (9M-25: +980bps y/y and +958bps y/y to 45.3% and 38.9%, respectively), despite the 17.1% y/y increase in operating expenses (ex-depreciation).
The growth in OPEX stemmed from higher staff costs (+25.2% y/y), a sharp rise in general administrative expenses (+350.1% y/y), and a modest 1.0% y/y increase in haulage costs.
Below the operating line, net finance costs declined by 7.3% y/y to N106.04 billion in Q3-25 (9M-25: -50.5% y/y to N208.95 billion). This was driven by a 164.7% y/y increase in finance income and a 31.0% y/y decline in interest expense, which offset the 125.6% y/y increase in foreign exchange losses.
Ultimately, profit before tax rose by 174.1% y/y to N310.94 billion, while profit after tax advanced by 149.8% y/y to N222.81 billion after a tax charge of N88.13 billion.
Meanwhile, Dangote Cement’s EPS surged to N13.08 (9M-25: +164.8% y/y to N43.82).
This performance was driven by a 35.3% y/y increase in revenue and a 109.2% y/y rise in operating profit.
”These strong results reflect the success of our efficiency programmes and
disciplined cost management, particularly in Nigeria, where a more favourable energy mix significantly reduced cash costs,” said Arvind Pathak, Chief Executive Officer.
”Looking ahead to the final quarter of the year, our focus remains on sustaining earnings momentum, deepening efficiency, and executing our long-term growth strategy.
With a clear strategic direction, disciplined execution, and a strong balance sheet, Dangote Cement is well-positioned to sustain its leadership and deliver superior value to all stakeholders,” Pathak added.
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