October 28, 2025/Cordros Report

Dangote Cement Plc (DANGCEM) released its Q3-25 unaudited results after the close of business yesterday (27 October), reporting a 147.3% y/y surge in EPS to NGN13.08 (9M-25: +164.8% y/y to NGN43.82). This performance was driven by a 35.3% y/y increase in revenue and a 109.2% y/y rise in operating profit. 

Aggregate revenue expanded by 35.3% y/y in Q3-25 (9M-25: +23.2% y/y), reflecting a 32.7% y/y increase in the average price per tonne to NGN157,573.32 and a modest 2.0% rise in group volumes to 6.87 million tonnes. On a quarter-on-quarter basis, revenue advanced slightly by 0.6%.

The Nigerian operations continued to anchor performance, with revenue rising by 36.8% y/y and accounting for 65.4% of total revenue. This was driven by a 33.8% y/y increase in the average cement price to NGN173,462.32 per tonne and a 2.2% y/y increase in sales volumes to 4.26 million tonnes (9M-25: +0.4% y/y to 13.21Mt). Pan-African operations also delivered a robust performance, with revenue growing by 30.7% y/y (34.6% of total revenue). The region’s performance was supported by a 27.3% y/y rise in average cement prices to NGN127,298.10 per tonne and a 2.7% increase in volumes to 2.94 million tonnes (9M-25: -5.0% y/y to 7.94Mt), reflecting stronger output in Tanzania, which offset softer sales in Senegal, South Africa, and Ethiopia.

Meanwhile, gross margin expanded by 981bps y/y to 64.1% (9M-25: +698bps y/y to 63.8%), with cost of sales (excluding depreciation) rising by 6.2% y/y, well below revenue growth. The growth in costs was largely driven by a 13.6% y/y rise in energy expenses, which offset the decline in raw material (-11.6% y/y) and plant maintenance (-7.9% y/y) costs. Overall, these trends highlight the company’s ongoing success in implementing cost-efficiency initiatives through the increased use of alternative fuels and raw materials, improved energy optimization, and the benefits of relative foreign exchange stability.

Operating leverage remained strong as the group’s EBITDA and EBIT margins rose by 14.28 ppts y/y and 13.56 ppts y/y to 44.6% and 38.4%, respectively, in Q3-25 (9M-25: +980bps y/y and +958bps y/y to 45.3% and 38.9%, respectively), despite the 17.1% y/y increase in operating expenses (ex-depreciation). The growth in OPEX stemmed from higher staff costs (+25.2% y/y), a sharp rise in general administrative expenses (+350.1% y/y), and a modest 1.0% y/y increase in haulage costs.

Below the operating line, net finance costs declined by 7.3% y/y to NGN106.04 billion in Q3-25 (9M-25: -50.5% y/y to NGN208.95 billion). This was driven by a 164.7% y/y increase in finance income and a 31.0% y/y decline in interest expense, which offset the 125.6% y/y increase in foreign exchange losses.

Ultimately, profit before tax rose by 174.1% y/y to NGN310.94 billion, while profit after tax advanced by 149.8% y/y to NGN222.81 billion after a tax charge of NGN88.13 billion.

Comment: DANGCEM delivered another exceptional quarter, sustaining strong momentum across both revenue and profit metrics. The performance reflects modest volume growth, robust pricing across markets, and continued success in cost optimization. Looking ahead, we expect the strong earnings trajectory to persist, supported by stable demand growth, favourable pricing dynamics, and ongoing cost efficiencies. Our estimates are under review.