Dangote Cement Plc has reported a staggering 303.5% year-on-year (y/y) surge in profit after tax for the second quarter of 2025, with earnings per share (EPS) rising to ₦18.45, according to its unaudited financial results published Friday, July 25.
The strong earnings growth was driven by a combination of higher operating profit, which rose 39.6% y/y, and a 96.5% y/y drop in net finance costs. The performance pushed the company’s half-year (H1-25) EPS to ₦30.74, a figure that already surpasses its full-year 2024 EPS of ₦29.74.
Revenue Climbs Despite Soft Volumes
Dangote Cement posted a 14.2% y/y increase in revenue to ₦1.08 trillion in Q2-25. For the half-year period, revenue rose 17.7% y/y to ₦2.07 trillion, supported by a 15.9% increase in the average price per tonne of cement to ₦158,466.60, which helped offset a 1.4% decline in volumes to 6.80 million tonnes.
Performance in the Nigerian market remained the company’s strongest anchor, with local operations contributing ₦746.28 billion, or 66.6% of total revenue. This represented a 38.6% y/y growth, buoyed by a 33.9% increase in average cement prices and a 3.5% increase in volumes.
However, revenue from Pan-African operations declined by 15.6% y/y to ₦359.47 billion, reflecting an 8.2% drop in cement prices and 8.1% decline in volumes. Management attributed the weak performance in this segment to post-election disruptions in Senegal and South Africa, as well as liquidity issues in Ethiopia.
Margins Expand on Cost Discipline
The company’s gross margin improved significantly by 441 basis points (bps) y/y to 63.5%, supported by lower raw material and energy costs, and increased use of alternative fuels. Cost of sales (excluding depreciation) rose only 1.9% y/y, much slower than revenue growth.
EBITDA margin climbed 714bps to 44.9% in Q2-25, with group EBITDA reaching new highs amid disciplined expense management. Operating expenses rose 10.9% y/y to ₦224.22 billion, mainly due to higher staff costs (+13.9%), corporate social responsibility (CSR) spending, and other operating expenses (+74.2%).
Interestingly, haulage costs, which make up 57.6% of OPEX, declined 7.0% y/y, reflecting the impact of stable diesel prices and the increased use of CNG-powered trucks.
Finance Costs Plunge on FX Gains
A major boost to the bottom line came from finance costs, which dropped 96.5% y/y to ₦6.88 billion, thanks to a ₦63.21 billion foreign exchange gain and a 154.9% jump in finance income to ₦34.16 billion. These gains helped cushion the effect of a 46.2% increase in interest expenses.
As a result, profit before tax rose 230.3% y/y to ₦418.06 billion, while profit after tax surged to ₦311.21 billion, up from ₦77.24 billion in Q2-24.
Outlook: Momentum to Continue
Industry analysts say the results reaffirm Dangote Cement’s leading position in the Nigerian market and its ability to navigate regional challenges. The early surpassing of its FY-2024 EPS marks a significant financial milestone.
“Dangote Cement is showing just how powerful pricing and cost control can be, even when volumes are soft,” said a Lagos-based equity analyst. “The shift toward alternative fuels and smart logistics is paying off.”
Looking ahead, the company is expected to continue capitalising on favourable price trends, stable energy costs, and efficient operations, especially in Nigeria.
Management is scheduled to hold an investor call on Thursday, July 31 at 3:00 p.m. Nigerian time to provide further insights.
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