April 30, 2026/InvestmentOne Report
Dangote Cement Plc delivered a strong performance in Q1:2026, with revenue rising by 20.45% YoY to NGN1.20trn, supported by both volume growth and pricing gains. Group sales volume increased by 13.75% YoY to 7.47 million metric tonnes (MMT), with Nigeria cement and clinker exports surging by 71.60% YoY to 549.6Kt. Nigeria remained the primary revenue driver, accounting for 71.94% of total revenue (vs. 69.98% in Q1:2025). Cost of Sales (COS) grew modestly by 10.18% YoY to NGN448.73bn, driven by increases in material consumed (+23.82% YoY to NGN110.95bn), and fuel & power costs (+4.33% YoY to NGN184.87bn). The relatively slower growth in COS, compared to revenue, was supported by an improved energy mix and operational efficiencies. Consequently, gross profit advanced by 27.56% YoY to NGN749.30bn, with gross margin expanding by 349bps to 62.54%.
Operating profit surged by 127.37% YoY to NGN506.18bn, despite the 21.23% increase in operating expense (OPEX) to NGN249.10bn. Specifically, selling & distribution cost rose by 15.55% YoY to NGN177.52bn, while administrative cost surged by 38.06% YoY to NGN71.58bn. Haulage expense rose modestly by 9.11% to NGN135.82bn, following the surge in energy prices at the tail end of Q1:2026. Nonetheless, the transition to full Compressed Natural Gas (CNG) powered trucks for distribution helped mitigate any significant uptick. Additionally, NGN5.28bn received in other income – comprising government grant received, insurance claims and other miscellaneous income – provided some support to operating profit. As a result, operating margin expanded by 230bps YoY to 42.25%.
Finance Cost Moderates on Foreign Exchange Stability: Net finance cost declined to NGN98.25bn from NGN129.36bn in Q1:2025, supported by deleveraging efforts, lower interest expense, alongside the exchange rate stability. Specifically, gross interest expense fell by 24.94% to NGN82.79bn, while net foreign exchange loss amounted to NGN13.21bn, down from NGN17.47bn in Q1:2025. Elsewhere, finance income stood at NGN3.04bn, entirely driven by interest income.
Profit Before Tax (PBT) increased by 35.00% YoY to NGN421.17bn, hinged on the robust top line growth and strong operating leverage. After the deduction of NGN100.07bn as income tax expense, Profit After Tax (PAT) amounted to NGN321.09bn. Consequently, Earnings Per Share (EPS) expanded to NGN19.14 kobo in Q1:2026 from NGN12.29 kobo in Q1:2025.
OUTLOOK: Looking ahead, we expect Dangote Cement Plc to sustain its earnings momentum in FY:2026, supported by ongoing capacity expansion, operational efficiency gains and the gradually stabilizing macroeconomic environment. We anticipate seeing some cost efficiency gains in Tanzania, following the commissioning of 300 CNG trucks, that could potentially reduce haulage cost for the Pan-African business. With significant progress being made on the construction of the 6.00MMTPA integrated cement plant in Itori, Ogun state and the 3.00MMTPA cement plant in C te d Ivoire, we remain optimistic on volume growth prospects, supported by expectations for strong demand for cement in the year. Consequently, we place a STRONG BUY recommendation on DANGCEM.
Please click here to download full report.
