Dangote Cement Plc records PAT of N421.17bn for Q1 2026

Dangote Cement Plc reported its unaudited Q1 2026 results showing a strong performance,
supported by a combination of volume growth, margin expansion, and a significantly lower tax
burden. Revenue increased by 20.40% y/y to N1.20tn and rose by 4.00% compared to Q4 2025,
indicating continued growth into the new financial year. Based on the company’s disclosures, the
topline expansion was supported by higher sales volumes across key markets, with pricing likely
playing a complementary role.

Cost of sales increased by 10.20% y/y, notably slower than revenue growth. This supported a
24.10% y/y increase in gross profit to N788.75bn and drove gross margin expansion of 193bps y/y
to 65.80%. Compared to Q4 2025, however, gross profit declined by 1.90%, with gross margin
contracting by 393bps from 69.80%, indicating relatively higher cost intensity in the current
quarter.

Operating Expenses

Operating expenses increased by 21.20% y/y and 3.10% compared to Q4 2025, broadly tracking
business activity. Despite this, EBITDA rose by 22.80% y/y and 2.60% compared to Q4 2025 to
N566.94bn, with EBITDA margin improving modestly by 92bps y/y to 47.30% (down 66bps
compared to Q4 2025). EBIT increased by 27.40% y/y to N506.18bn, with EBIT margin expanding
by 230bps y/y to 42.30%. On a quarter-on-quarter basis, EBIT declined by 6.00%, reflecting the
softer grossmargin outcome in the period.

Below the operating line, net finance cost remained broadly flat year-on-year at N95.21bn (vs.
N96.02bn in Q1 2025) but increased significantly compared to N32.61bn in Q4 2025. This was
largely driven by an FX loss of N17.47bn recorded in Q1 2026, compared to a gain of N28.98bn in
the prior period, which exerted upward pressure on net finance costs. The gain on net monetary
position was largely stable at N10.19bn (-3.70% y/y), but represents a notable improvement
compared to a loss of N16.63bn in Q4 2025, partially offsetting the higher finance cost.

Profit from Operations

As a result, profit before tax increased by 35.00% y/y to N421.17bn but declined by 14.30%
compared to Q4 2025, reflecting the combined effect of higher finance costs and slightly lower
operating profit relative to the previous quarter.

At the bottom line, net income grew by 55.70% y/y to N320.65bn and increased by 19.30%
compared to Q4 2025. Earnings per share rose to 19.14 kobo (+55.70% y/y, +19.30% vs Q4 2025).
The stronger growth at the net level relative to PBT was primarily driven by a significantly lower
effective tax rate of 23.80%, compared to 32.90% in Q1 2025 and 44.70% in Q4 2025.

Profitability metrics improved meaningfully, with net profit margin expanding by 606bps y/y and
343bps compared to Q4 2025 to 26.80%. Return on average equity increased to 46.80%
(+1,060bps y/y), while return on assets rose to 21.20% (+842bps y/y), reflecting stronger earnings
generation.

Leverage metrics improved during the period, supported by stronger earnings and lower net debt
levels. Net debt-to-equity declined to 0.10x from 0.80x in Q1 2025, while net debt-to-EBITDA
improved to 0.40x from 1.50x. Interest coverage strengthened to 5.20x from 3.10x y/y, although it
remains below the 8.20x recorded in Q4 2025.

Dangote Cement’s Q1 2026 results reflect solid year-on-year growth, supported by margin
expansion and improved bottom-line efficiency. While performance moderated relative to Q4 2025
at the operating and pre-tax levels, the company maintained strong profitability and strengthened its
balance sheet position. SOURCE: Coronation Asset Management