Dangote Cement delivers PAT of N209.25 bn in Q1 of 2025
Dangote Cement Plc (DANGCEM) delivered a moderate Q1 2025 performance, recording a Profit After Tax (PAT) of N209.25bn, representing an 85.7% y/y increase from N112.67bn in Q1 2024. The results were anchored by solid pricing in the Nigerian business, improved gross margin, and a sharp rise in finance income, partially offset by weaker Pan-African performance and elevated tax charges.
Group revenue rose 21.7% y/y to N994.66bn, compared to N817.35bn in Q1 2024. The Nigerian operations accounted for N696.04bn or 70.0% of total revenue, supported by higher cement prices and sustained demand from public and private infrastructure projects. Volumes declined 6.7% y/y to 6.57Mt, but the Company’s
ability to maintain a good average sale price for its product more than offset volume pressure.
Pan-African revenue declined to N322.65bn from N381.27bn,reflecting currency depreciation and demand softness in key markets. Gross profit rose 40.1% y/y to N587.39bn, with gross margin expanding to 59.1%, up 774bps y/y. This was driven by the ability of the Company to sell at a higher average price during the period than it was able to in Q1 2024, operational efficiency, and moderated input cost escalation. Cost of sales grew 2.3% y/y to N407.27bn, significantly below revenue
growth, reflecting an improved energy mix as they shifted away from more expensive energy sources like diesel and imported coal to cheaper and more local alternative energy sources like domestic natural gas and biomass as well as cost discipline. Total operating expenses rose 7.7% y/y to N205.48bn, with selling and distribution expenses at N153.64bn (+5.8% y/y) and admin costs at N51.84bn (+13.9% y/y).
Despite ongoing inflationary pressures, the Group managed to manage this higher cost environment quite effectively. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) grew 49.2% y/y to N461.64bn, and Earnings Before Interest and Taxes (EBIT) expanded 55.7% y/y to N397.42bn, translating to EBITDA
and EBIT margins of 46.4% and 39.9% respectively.
Finance income surged 192.7% y/y to N33.35bn, supported by improved returns on cash and FX gains. Meanwhile, finance costs rose moderately to N129.38bn (+5.0% y/y), yielding a net finance cost of N96.03bn. The Group also booked a N10.58bn gain on net monetary position, linked to operations in high-inflation environments like Zimbabwe and Congo. Pretax profit jumped 87.4% y/y to N311.97bn, while PAT rose 85.7% y/y to N209.25bn. The effective tax rate stood at 32.9%, slightly above the prior year. Earnings per share rose to N12.29, from N6.68 in Q1 2024.
The Pan-African segment posted a net loss of N110.08bn in Q1, reflecting continued macroeconomic instability across several operating regions. Ethiopia and Ghana were impacted by high inflation and currency depreciation, while Senegal and Zambia struggled with softer market demand and increased competition. South Africa’s operations faced lower capacity utilization and pressure from import substitution, while Tanzania and Congo experienced operational downtime and FX linked cost spikes. Despite a small uptick in financing outflows (N274.95bn in Q1 2025, up 2.7% from Q1 2024), liquidity remained robust, supported by strong cash flows and moderate leverage.
Looking ahead, DANGCEM’s ability to maintain its price range in Nigeria despite pressures from lower demand, accelerate cost efficiency, and address Pan-African headwinds will be pivotal. Continued focus on logistics optimization, alternative fuels, and digital transformation will enhance resilience. SOURCE: Coronation Research
