Dangote Cement reports N311.98bn PBT in Q1 2025

Dangote Cement Plc has released its unaudited financial results, reporting a profit before tax of N311.974 billion for the first quarter (Q1) ended March 31, 2025.

The figure represents an 87.48 per cent growth compared to N166.404 billion recorded in Q1 2024.

The company also posted a profit after tax of N209.245 billion, up 85.71 per cent, from N112.674 billion reported in the same period last year.

The performance also saw a revenue of N994.659 billion, marking a 21.69 per cent increase from the prior year.

The company’s production capacity remained at 52 million metric tons, though production volume declined by 7.41 per cent to 6.547 million tons, while sales volume fell by 6.72per cent to 6.569 million tons.

Revenue from the Nigerian segment rose significantly to N696.042 billion, increasing its contribution to group revenue from 55.41per cent in Q1 2024 to 69.98 per cent in Q1 2025.

Conversely, Pan African revenue dropped by 15.37per cent to N322.653 billion, reducing its share of group revenue to 32.44per cent.

On the cost side, fuel and power expenses, amounting to N177.193 billion, remained a key component of cost of sales.

However, cost of sales grew more slowly than revenue, which helped boost both gross profit and gross profit margin, now standing at 59per cent, up by 15 percentage points from Q1 2024.

Similarly, a moderate increase in overheads (up 7.7peer cent) supported growth in operating profit, with the operating profit margin improving to 39.96per cent, compared to 31.23per cent in Q1 2024, a rise of 27.92per cent. Haulage expenses continued to weigh heavily, accounting for over 60per cent of the N205.480 billion in administrative, selling, and distribution costs.

Chief Executive Officer, Dangote Cement, Mr. Arvind Pathak in a statement said:  “Dangote Cement delivered a strong and resilient performance in the first quarter  of 2025, despite facing persistent macroeconomic challenges across our key  markets.

“Group revenue rose by 21.7per cent to N994.7 billion, supported by strategic pricing initiatives, particularly in Nigeria where revenue grew by 53.7per cent. We also achieved a notable improvement in profitability. Group EBITDA grew by 49.2per cent to N461.6 billion, with the EBITDA margin strengthening to 46.4per cent.

“This was largely underpinned by effective cost containment efforts, especially in Nigeria, where  EBITDA margins improved significantly from 49.7per cent to 56.7per cent.

“Group volumes declined by 6.7per cent to 6.6Mt in Q1 2025. The decline was primarily  driven by softer demand and heightened inflationary pressures across key  markets. Despite these headwinds, we continued to strengthen our export capabilities.

“Notably, our export volumes grew by 21.2per cent, with eight clinker  shipments to Ghana and Cameroon during the quarter. This progress further supports our long-term goal of expanding our pan-African trade footprint. Profit after tax grew by 85.7per cent to N209.2 billion, while earnings per share rose to N12.29, representing an 84.0per cent year-on-year increase.

“We made measurable progress on our sustainability journey during the quarter,  with increased use of alternative fuels, expansion of waste heat recovery  infrastructure, and firm steps towards our medium-term decarbonisation roadmap.

“As we look to the future, our focus remains unwavering on driving sustained  profitability, expanding our export presence, and executing strategic long-term  investments. These efforts are designed to fuel sustainable growth and create lasting value across our operations in Africa.”