October 28, 2025/CSL Report
The cement industry sustained its strong growth momentum in the first nine months of 2025, delivering impressive financial results. Total Revenue for all listed cement producers rose by 32.30% year-on-year (y/y) to ₦4.79 trillion, up from ₦3.62 trillion in 9M 2024. This robust performance was largely driven by price adjustments across the sector, with some players also recording notable volume growth. Dangote Cement, the industry leader, reported a 23.2% y/y Revenue increase to ₦3.15 trillion, up from ₦2.56 trillion in 9M 2024.
further cementing its market dominance. BUA Cement, the second-largest producer, reported a strong 47.2% y/y increase in Revenue, reaching N858.73 billion, up from N583.41 billion in 9M 2024. Lafarge Africa delivered the highest revenue growth among the top three, posting an impressive Revenue growth of 62.8% y/y, with total Revenue reaching ₦780.49 billion, up from ₦479.50 billion in 9M 2024. Overall, these results align with expectations and highlight the sector’s continued resilience and growth potential.
On the cost side, cement companies delivered commendable results despite a challenging inflationary environment. Cost of Goods Sold (COGS), excluding depreciation, rose by 7.83% y/y to ₦1.85 trillion, a slower pace than Revenue growth. Similarly, Operating Expenses (excluding depreciation) increased moderately by 18.14% y/y to ₦861.66 billion. In line with our expectations, cement producers recorded zero foreign exchange (FX) losses in the first half of the year, marking a significant reversal from the ₦399.97 billion in FX losses reported in the same period of 2024. This strong performance can be attributed to the relative stability in the foreign exchange (FX) market and proactive hedging strategies adopted by the
companies.
Supported by strong Revenue growth, disciplined cost management, and zero FX losses, cement companies recorded outstanding profitability in 9M 2025. BUA Cement’s Pre-tax Profit soared by 448.2% y/y to 338.57 billion, while Dangote Cement’s Pre-tax Profit was up by 156.2% y/y to ₦1.04 trillion in 9M 2025. Lafarge Africa also delivered strong Pre-tax profit growth, with earnings surging by 232.1% y/y to ₦313.29 billion in 9M 2025.
We maintain a positive outlook for the cement sector through the remainder of 2025. Strong topline growth is expected to persist, supported by resilient cement demand and ongoing price adjustments in response to macroeconomic trends. Volume growth should benefit from increased capital expenditure, rising private sector participation, and government-led infrastructure projects. Additionally, cement companies are likely to continue avoiding foreign exchange (FX) losses, thanks to improved market stability and effective hedging strategies. Cost pressures are expected to remain manageable, with industry-wide cost-saving initiatives already in place. Overall, the sector is well-positioned for sustained profitability, underpinned by strong fundamentals and favourable operating conditions.
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