The company reported a pre-tax profit of N311.97 billion, representing an 87.48% year-on-year (YoY) growth compared to N166.40 billion recorded in the first quarter of 2024. Profit after tax similarly surged by 85.71% to N209.25 billion, up from N112.67 billion during the same period last year.
At the heart of this strong bottom-line performance was a 21.69% increase in revenue, which climbed to N994.66 billion from N817.38 billion in Q1 2024, underpinned by solid market share gains in its home market.
Operational Highlights
Key financial metrics for the period reflect strong underlying momentum:
- Revenue: N994.66 billion (+21.69% YoY)
- Cost of Sales: N407.27 billion (+2.29% YoY)
- Gross Profit: N587.39 billion (+40.13% YoY)
- Operating Profit: N397.42 billion (+55.67% YoY)
- Finance Costs: N129.38 billion (+4.99% YoY)
- Basic EPS: N12.29 (+83.98% YoY)
- Cash and Cash Equivalents: N417.66 billion (-7.15% YoY)
- Total Assets: N6.445 trillion (+0.66%)
Dangote Cement’s gross profit margin improved markedly to 59%, up from 44% in the corresponding quarter of 2024. This was achieved as cost of sales grew at a much slower pace than revenue, reflecting enhanced operational efficiency. Similarly, the operating profit margin rose to 39.96%, a sharp improvement from 31.23% recorded in Q1 2024.
Despite rising overhead costs, particularly in haulage (which accounts for over 60% of administrative, selling, and distribution expenses totaling N205.48 billion), the company maintained strong operating leverage. Administrative expenses grew by 13.86% to N51.84 billion, while selling and distribution expenses increased by a moderate 5.77% to N153.64 billion.
On the financing side, a sharp reduction in foreign exchange losses — from N63.77 billion in Q1 2024 to N17.47 billion — helped cap finance costs, despite gross interest expenses remaining high at N110.30 billion.
Production and Market Segment Performance
The company’s total production capacity remained unchanged at 52 million metric tons per annum. However, actual production volume slipped by 7.41% YoY to 6.547 million tons, while sales volume declined by 6.72% to 6.569 million tons.
Revenue from its Nigerian operations rose significantly to N696.04 billion, boosting its share of group revenue to 69.98%, up from 55.41% a year earlier. Conversely, Pan-African revenue fell by 15.37% to N322.65 billion, reducing its contribution to total group turnover to 32.44%.
Fuel and power costs — major components of the company’s production costs — remained significant at N177.19 billion, but overall cost containment efforts helped protect margins.
Balance Sheet and Financial Strength
Dangote Cement’s balance sheet remained solid, with total assets inching up by 0.66% to N6.445 trillion. More notably, shareholders’ equity grew at a faster pace than total assets, allowing the company to lower its leverage ratio from 2.91x at the end of 2024 to 2.71x at the end of Q1 2025.
In practical terms, this means that for every N1 of shareholders’ money, Dangote Cement now utilizes N2.71 in total assets, compared to N2.91 previously — a positive sign of strengthening financial stability.
Share Price and Dividend Update
Despite the strong financial performance, Dangote Cement’s share price has faced some pressure in 2025. As of Friday, April 25, the stock closed at N432, down 10% from its previous close of N480, translating to a year-to-date loss of 9.77%.
However, shareholders have something to look forward to. The company has declared a dividend of N30 per share, payable on June 23, 2025, offering a dividend yield of approximately 6.94% at the current market price.