Dangote Cement Plc recorded a 23.21% YoY increase in revenue to NGN3.15trn in 9M:2025, driven primarily by price adjustments despite a 2.10% YoY decline in group sales volume to 20.24 million metric tonnes. Cost of sales modestly advanced by 4.03% YoY to NGN1.29trn, driven by increases in fuel & power consumed (+6.38% YoY to NGN568.97bn), depreciation & amortization (+10.28% YoY to NGN145.29bn), plant maintenance cost (+16.33% YoY to NGN132.83bn) and salaries and related staff costs (+9.44% YoY to NGN108.21bn).

Meanwhile declines in materials consumed (-14.87% YoY to NGN255.25bn) and other production expenses (-10.83% YoY to NGN78.05bn) mirrored the reduction in production volumes during the reviewed period. Consequently, gross profit accelerated by 41.11% YoY to NGN1.87trn, with gross margin expanding by 752bps on an annual basis to 59.23%.

We expect Dangote Cement Plc to sustain its growth momentum, supported by its ongoing expansion, operational efficiency gains and the stabilizing macroeconomic environment. The commissioning of the 3.00Mta C te d Ivoire grinding plant in October 2025 marks a significant milestone in its expansion drive, bringing total installed capacity to 55Mta across Africa and reinforcing its commitment to regional self-sufficiency.

The deployment of CNG-powered trucks is expected to further strengthen logistics efficiency, reduce haulage costs, and support the company s sustainability goals. Hence, we expect the group to maintain steady earnings growth by year end. We therefore place an OVERWEIGHT rating on DANGCEM.

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