Dangote Cement’s Q1 2025 Performance: A Story of Resilience and Strategic Growth
Dangote Cement Plc, a leading cement producer in Africa, showcased a robust financial performance in the first quarter of 2025, navigating macroeconomic headwinds and inflationary pressures to deliver substantial growth in revenue and profitability. The company’s unaudited financial statements revealed a profit after tax of N209.2 billion, a remarkable 85.7% increase compared to the N112.7 billion recorded in the same period of 2024. This impressive growth was underpinned by a 21.7% rise in revenue, reaching N994.7 billion, driven primarily by strategic pricing initiatives, especially in Nigeria, where revenue surged by an impressive 53.7%. The company’s strong performance underscores its ability to adapt to challenging market conditions and capitalize on opportunities for growth.
A key driver of Dangote Cement’s profitability in Q1 2025 was the significant improvement in its gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA). Gross profit climbed to N587.4 billion from N419.2 billion in Q1 2024, while EBITDA surged by 49.2% to N461.6 billion. This resulted in a strengthened EBITDA margin of 46.4%, compared to 40.7% in the corresponding period of the previous year. In Nigeria, the EBITDA margin witnessed a particularly significant improvement, rising from 49.7% to 56.7%, largely attributed to effective cost-containment strategies implemented by the company. This demonstrates Dangote Cement’s commitment to operational efficiency and its ability to manage costs effectively in a volatile economic environment.
Despite the overall positive financial performance, Dangote Cement experienced a 6.7% decline in group volumes to 6.6 million tonnes during the quarter. This contraction reflects softer demand and persistent inflationary pressures across its key markets. However, the company achieved a notable 21.2% growth in export volumes, supported by clinker shipments to Ghana and Cameroon, highlighting its efforts to diversify its market reach and expand its presence beyond its core markets. This strategic focus on exports is expected to contribute to the company’s long-term growth and resilience.
Arvind Pathak, CEO of Dangote Cement, expressed satisfaction with the company’s Q1 2025 results, emphasizing its resilience and strong performance amidst challenging macroeconomic conditions. He highlighted the strategic pricing initiatives, particularly in Nigeria, as a key contributor to the impressive revenue growth. He further underscored the company’s commitment to sustainability, citing progress in the use of alternative fuels, expansion of waste heat recovery infrastructure, and advancement towards its medium-term decarbonisation roadmap. This commitment to sustainable practices reflects Dangote Cement’s recognition of its environmental responsibilities and its dedication to long-term sustainable growth.
Looking ahead, Dangote Cement remains focused on driving sustained profitability, expanding its export footprint, and executing strategic long-term investments. The $400 million investment to restart a second production line at the Mugher cement plant in Ethiopia, announced by Aliko Dangote, Chairman and CEO of Dangote Industries Ltd., exemplifies this forward-looking approach. This expansion is expected to double the plant’s annual output to 5 million tonnes, further solidifying Dangote Cement’s position as a leading cement producer in Africa and contributing to the economic development of the region. These strategic initiatives are expected to fuel sustainable growth and create lasting value across Dangote Cement’s African operations.
Dangote Cement’s financial position remained stable, with total assets slightly increasing to N6.45 trillion as of March 31, 2025, compared to N6.4 trillion at the end of December 2024. Total liabilities decreased to N4.07 trillion from N4.23 trillion in December 2024. While the company reported a decrease in total comprehensive income for the quarter, primarily due to foreign currency exchange losses, earnings per share rose significantly, reflecting the overall strong performance of the business. The company’s continued focus on strategic investments, cost management, and sustainable practices positions it well for continued growth and success in the African cement market.
