Dangote Cement Plc’s after-tax profit rose sharply to N743.3 billion in the nine months ended September 30, 2025, from N279.1 billion in the same period of 2024, a 166 percent increase despite a marginal decline in sales volumes.

The strong earnings were driven by improved pricing, higher contributions from its Pan-African and Nigeria operations, and foreign exchange gains that offset cost pressures from energy and raw materials.

Group revenue rose 23 percent to N3.15 trillion from N2.56 trillion a year earlier, reflecting strong pricing across key markets even as total cement and clinker sales volume slipped 2 percent to 20.24 million tonnes from 20.67 million tonnes in the same period of 2024.

According to CSL StockBrokers Research analysts, the rise in revenue was driven by the fact that the Group’s average selling price rose by 25.85 percent to N155,875 per ton, compared to N123,855 per ton in the same period last year.

Revenue from Dangote Cement’s Nigerian operations climbed by 42.4 percent year-on-year to N2.18 trillion in 9M 2025, up from N1.53 trillion in 9M 2024.

“This strong performance was driven largely by a 41.9 percent increase in the average selling price, which rose to N165,110 per ton from N116,365 per ton in the corresponding period of the previous year. Additionally, sales volume inched up by 0.4 percent to 13.21 million metric tons, compared to 13.16 million metric tons in 9M 2024.”

“The marginal increase in volume reflects softer demand in some operating markets, consistent with the typical slowdown in construction activities during the rainy season in the third quarter,” the analysts added.

Despite this, Pan-African operations contributed N1.06 trillion compared to N1.09 trillion last year, indicating resilient regional performance amid macroeconomic headwinds.

The contraction was driven largely by a 5 percent year-on-year drop in sales volumes to 7.94 million metric tons, down from 8.36 million metric tons in the prior period.

“This occurred despite a modest 1.7 percent increase in the average selling price, which rose to N133,078 per ton from N130,861 per ton a year earlier. Management attributed the weaker performance to post-election uncertainties in key markets such as Senegal and South Africa, as well as liquidity constraints in Ethiopia due to delays in national budget approvals,” analysts at CSL said.

Income statement drivers

Gross profit surged 41 percent to N1.87 trillion, supported by higher average selling prices and production cost control. Total cost of sales edged up just 4 percent to N1.29 trillion, driven mainly by increases in fuel, power, and raw materials costs. Energy consumption remained the largest cost component at N569 billion, followed by materials at N255 billion and staff-related expenses of N108 billion.

Selling and distribution expenses rose modestly by 8 percent to N500.6 billion, reflecting higher logistics and promotional spending to sustain market reach. Administrative costs climbed to N202.3 billion from N145.6 billion due to inflationary effects on staff and corporate overheads.

Finance income grew 165 percent to N77.1 billion, buoyed by higher returns on short-term investments and interest from subsidiaries. Finance costs, however, declined to N286 billion from N451 billion, aided by reduced foreign exchange losses and lower borrowing costs.

Source: Business Day