By Ayomide Otitoju
Dangote Cement Plc has reported robust financial results for the first quarter ended March 31, 2025, posting a pre-tax profit of ₦311.97 billion-an 87.5% increase from ₦166.40 billion recorded in the same period last year[1][2]. The company’s profit after tax surged by 85.7% to ₦209.25 billion, compared to ₦112.67 billion in Q1 2024.
Group revenue rose 21.7% year-on-year to ₦994.66 billion, up from ₦817.35 billion in Q1 2024, driven largely by strategic pricing and a strong performance in the Nigerian market[1][2][4]. Revenue from Nigeria jumped to ₦696.04 billion, increasing its share of group revenue to nearly 70%, up from 55.4% a year earlier. In contrast, Pan-African revenue declined by 15.4% to ₦322.65 billion, reducing its contribution to 32.4% of group revenue.
Despite maintaining a production capacity of 52 million metric tons, Dangote Cement saw group production volumes fall by 7.4% year-on-year to 6.55 million tons, while sales volume slipped 6.7% to 6.57 million tons, a trend attributed to softer demand and inflationary pressures in key markets[2]. However, Nigerian cement and clinker exports rose by over 21% during the quarter, with eight clinker shipments dispatched to Ghana and Cameroon.
Cost management contributed significantly to the improved margins. Cost of sales increased by just 2.3% to ₦407.27 billion, while gross profit climbed 40.1% to ₦587.39 billion, lifting the gross profit margin to 59%, a 15-percentage-point improvement from Q1 2024. Operating profit rose 55.7% to ₦397.42 billion, with the operating profit margin strengthening to 39.96%, up from 31.23% in the prior year.
Administrative expenses grew by 13.9% to ₦51.84 billion, while selling and distribution expenses rose by 5.8% to ₦153.64 billion. Haulage costs continued to account for over 60% of these combined expenses[1]. Finance costs edged up 5% to ₦129.38 billion, but the impact was mitigated by a sharp reduction in foreign exchange losses, which fell from ₦63.77 billion in Q1 2024 to ₦17.47 billion this year.
Earnings per share nearly doubled, rising 84% to ₦12.29 from ₦6.68 in the previous year.
Cash and cash equivalents stood at ₦417.66 billion, down 7.2% from the end of 2024, while total assets edged up 0.66% to ₦6.45 trillion.
Chief Executive Officer Arvind Pathak described the performance as “strong and resilient,” citing effective cost containment, improved export capabilities, and progress on sustainability initiatives as key drivers behind the results.
Key Financial Highlights (Q1 2025 vs Q1 2024):
- Revenue: ₦994.66 billion (+21.7%)
- Pre-tax Profit: ₦311.97 billion (+87.5%)
- Profit After Tax: ₦209.25 billion (+85.7%)
- Gross Profit: ₦587.39 billion (+40.1%)
- Operating Profit: ₦397.42 billion (+55.7%)
- Basic EPS: ₦12.29 (+84%)
- Total Assets: ₦6.45 trillion (+0.66%)[1][2][4]
Dangote Cement’s management says it remains focused on sustaining profitability, expanding its export presence, and executing strategic investments to drive long-term growth across Africa
