Dangote Cement Posts Record $743bn Profit Despite Flat Volumes in 9M 2025
Dangote Cement Plc (DANGCEM) has reported a phenomenal nine-month result for the period ending September 30, 2025, with Profit After Tax (PAT) surging by $166.3\%$ to a record $743.3$ billion. This landmark performance, which already surpasses the company’s full-year 2024 profit, was driven primarily by strong pricing adjustments in Nigeria and exceptional operational efficiency, successfully counteracting a slight drop in group sales volumes.
Group volumes for the period stood at $20.2$ million tonnes ($\text{Mt}$), representing a marginal $2.1\%$ decline year-on-year. However, disciplined cost management, a sharp reduction in foreign exchange losses, and lower finance expenses translated this stability into massive profit growth.
Financial Highlights: Margin Expansion Fuels Growth
The company’s strategic focus on efficiency and pricing yielded significant margin expansion, as demonstrated by the key financial figures:
| Metric | 9M 2025 Value (Naira Trillion) | YoY Change | Key Result |
|---|---|---|---|
| Revenue | $3.15$ trillion | $\uparrow 23.2\%$ | Driven by higher realized pricing. |
| EBITDA | $1.43$ trillion | $\uparrow 57.2\%$ | EBITDA Margin jumps to $45.3\%$ (vs $35.5\%$ in 9M 2024). |
| Profit Before Tax | $1.04$ trillion | $\uparrow 156.2\%$ | Surpassed $\text{N}1$ trillion milestone. |
| Profit After Tax | $743.3$ billion | $\uparrow 166.3\%$ | Record profit figure. |
| Earnings per Share | $43.82$ | $\uparrow 164.8\%$ | Reflects enhanced shareholder value. |
A pivotal element of the financial cleanup was the reduction in net debt, which fell dramatically from $2.06$ trillion at $ 2024 to $958$ billion, a reduction of over $1.1$ trillion thanks to robust cash flow generation and timely repayments.
Nigeria: The Undisputed Profit Engine
Nigerian operations cemented their position as the growth engine, accounting for over two-thirds of group revenue and driving nearly all the profit growth.
Revenue: $2.18$ trillion, $\uparrow 42.4\%$
EBITDA: $1.29$ trillion, $\uparrow 85.2\%$
EBITDA Margin: A massive $59.2\%$
Volumes: $13.2$, $\uparrow 0.4\%$ (Virtually flat domestic volumes)
Exports: Cement and clinker exports rose $23\%$ to $1.1\text{Mt}$.
The Nigerian success story is attributed to operational efficiencies, including a better energy mix that cut production costs and the strategic deployment of Compressed Natural Gas ($\text{CNG}$) trucks to reduce logistics expenses, successfully mitigating inflationary pressures.
Pan-Africa Faces Headwinds
Conversely, operations across the rest of Africa were hampered by regional economic challenges, including political uncertainty and liquidity issues in key markets.
Revenue: $1.06$ trillion, $\downarrow 3.4\%$
EBITDA: $201$ billion, $\downarrow 18.6\%$
Volumes: $7.94$, $\downarrow 5.0\%$
While Tanzania and Zambia reported modest growth, volume declines were noted in Senegal, Ghana, Cameroon, and South Africa due to slower construction activity.
Balance Sheet & Expansion
The company’s balance sheet saw strong improvement, highlighted by the sharp drop in net debt. Foreign exchange losses plummeted from a staggering $222$ billion to just $\text{N}1$ billion, aided by a relatively stable/appreciating Naira environment.
Capital expenditure totaled $462$ billion, reinforcing future capacity. The commissioning of the $3$ grinding plant in Côte d’Ivoire raised the group’s total installed capacity to $55$ million tonnes per annum ($\text{Mta}$). Construction also continues at the vital Itori Integrated Plant in Nigeria.
Commenting on the results, CEO Arvind Pathak stated, “The commissioning of our Côte d’Ivoire plant marks another step in our growth journey. Our focus remains on sustaining earnings momentum, driving efficiency, and executing our long-term growth strategy.”
The Bottom Line: Dangote Cement’s 9M 2025 results underscore a successful strategy of value over volume. The company’s ability to aggressively raise prices, manage costs, and benefit from favorable currency movements has translated flat demand into industry-leading profitability. The sustained performance in $4$ will be key to validating the long-term sustainability of these trends.
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