April 30, 2026/Cordros Report
Dangote Cement Plc (DANGCEM) released its Q1-26 unaudited results on 29 April, reporting EPS growth of 55.7% y/y to NGN19.14 (Q1-25: NGN12.29). Earnings growth was supported by a 20.4% y/y increase in revenue, reflecting higher volumes (+13.7% y/y) and improved realised prices (+5.9% y/y).
Group revenue rose by 20.4% y/y, driven by a 13.7% y/y increase in sales volumes to 7.47 million tonnes (Mt) and a 5.9% y/y increase in average realised price to NGN160,336.00/tonne.
By geography, Nigerian operations grew by 23.8% y/y (69.1% of revenue), supported by an 11.5% y/y increase in volumes to 4.90Mt, reflecting strong market demand, and an 11.0% y/y increase in average prices to NGN175,775.00/tonne (c.USD127.00/tonne). Export volumes also strengthened, rising by 71.6% y/y to 549.6Kt. At the same time, Pan-African operations grew by 14.7% y/y (30.9% of revenue), driven by a 19.5% y/y increase in volumes to 2.92Mt, which more than offset a 4.1% y/y decline in prices to NGN126,782.00/tonne (c.USD91.00/tonne). Notably, volumes recovered across several Pan-African markets, including Ethiopia (+31.5% y/y), Senegal (+15.8% y/y), Tanzania (+24.7% y/y), and South Africa (+5.7% y/y). Management attributed the region’s volume growth to improved macro stability, increased government spending, and stronger infrastructure activity across key markets.
Meanwhile, gross margin expanded by 349bps y/y to 62.5% as cost of sales grew at a slower pace (+10.2% y/y) relative to revenue. Cost pressures were driven by higher raw material costs (+27.4% y/y | 24.7% of COGS), reflecting increased production volumes, and a modest rise in energy costs (+4.3% y/y | 41.2% of COGS), supported by continued use of alternative fuels.
Similarly, EBITDA and EBIT margins improved to 47.3% (+92bps y/y) and 42.3% (+230bps y/y), respectively, despite a 21.2% y/y increase in operating expenses. OPEX growth was driven by higher staff costs (+31.7% y/y | 14.6% of OPEX) and haulage costs (+9.1% y/y | 54.5% of OPEX).
Furthermore, net finance costs declined marginally by 0.8% y/y to NGN95.21 billion, supported by lower interest expenses (-24.9% y/y) and reduced FX losses (-24.4% y/y), which offset the sharp decline in finance income (-90.9% y/y to NGN3.04 billion).
Finally, profit before tax (PBT) increased by 35.0% y/y to NGN421.17 billion, while profit after tax (PAT) grew by 55.7% y/y to NGN321.10 billion.
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Comment: Similar to industry peers, Dangote Cement delivered a strong Q1-26 performance, with earnings growth driven by a combination of volume recovery across both the Nigerian and Pan-African operations and improved pricing. The recovery in volumes was particularly notable across key Pan-African markets, reflecting better macro stability and improving demand conditions. Looking ahead, we expect earnings momentum to remain firm, supported by sustained volume recovery across the Group and continued price adjustments in the Nigerian market. However, we note that elevated energy costs, driven by higher global oil prices, remain a key risk, with potential to pressure margins if cost pass-through weakens. Our estimates are under review.
