Dangote Cement Plc reported a 17.70% YoY increase in revenue to NGN2.07trn in H1:2025, mostly due to price improvements as group sales volume declined by 4.08% YoY to 13.37 million metric tonnes.  Cost of sales advanced modestly by 2.43% YoY to NGN853.56bn, driven by increases in fuel & power consumed (+3.30% YoY to NGN387.19bn), depreciation & amortization (+7.29% YoY to NGN101.37bn) and plant maintenance cost (+30.51% YoY to NGN94.05bn). Meanwhile, materials consumed (-16.49% YoY to NGN167.68bn) and other production expenses (-13.15% YoY to NGN50.82bn) posted declines, reflecting the reduction in production volumes. As such, gross profit printed at NGN1.22trn, with the gross margin expanding by 614bps on annual basis to 58.80%.

As Dangote Cement Plc enters the second half of the year, the group remains well positioned to sustain its growth momentum, leveraging recent strategic investments and operational improvements. The phased rollout of 1,600 additional CNG-powered trucks is expected to further optimise logistics efficiency, reduce haulage costs, and support broader cost management and sustainability goals. Despite macroeconomic headwinds, strong pricing power and strategic execution are expected to drive resilient earnings and deliver sustainable returns to shareholders. Additionally, Dangote Cement Plc remains committed to long-term value creation through innovation, deeper pan-African market penetration, and improved operational efficiency. Hence, we expect the group to maintain steady earnings growth in the year. However, considering current market dynamics we place a NEUTRAL rating on DANGCEM.

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