Dangote Cement Plc has released its financial report for the second quarter ended June 30, 2025, reporting a pre-tax profit of N418.06 billion, representing a 230.35% year-on-year (YoY) increase compared to the N126.55 billion recorded in Q2 2024.
This performance pushed its half-year (H1) pre-tax profit to N730 billion, a 149% YoY growth, nearly matching (99.7%) its entire FY 2024 pre-tax profit.
The cement giant also delivered a profit after tax of N311.21 billion in Q2, up by 303% YoY from N77.23 billion in the same period last year.
Consequently, H1 post-tax profit climbed to N520.46 billion, already 3% higher than the entire profit recorded for the 2024 financial year.
This exceptional bottom-line growth was driven by a blend of top-line expansion, margin improvement, and sharp reductions in finance costs.
Specifically, Q2 revenue rose by 14.24% to N1.1 trillion, while cost of sales grew modestly by just 3%, reaching N446.29 billion. This enabled a strong expansion in gross profit and lifted the gross margin to 59%.
Further boosting profitability, finance costs dropped by 50% YoY to N104.3 billion, as the company recorded no foreign exchange losses in Q2 2025, a stark contrast to the significant (138 billion) FX-related losses it faced in the same period last year.
With profits already surpassing the full-year 2024 figures by midyear, Dangote Cement’s solid cost control, improved margins, and absence of FX losses indicate that the company may not only sustain this momentum but potentially surpass its 2024 performance in 2025.
Key highlights (Q2 2025 vs. Q2 2024):
- Revenue: N1.076 trillion +14.24% YoY
- Cost of Sales: N446.294 billion +2.57% YoY
- Gross Profit: N630.645 billion +24.24% YoY
- Administrative expenses: N72.439 billion +36.11% YoY
- Selling and Distribution Expenses: N167.574 billion +5.37% YoY
- Operating profit: N413.559 billion +39.57% YoY
- Finance cost: N104.258 billion -50.19% YoY
- Basic EPS: N18.44 +303.50% YoY
- Cash and cash equivalent: N383.899 billion -14.66%.
- Total assets: N6.617 trillion +3.34%
Quick analysis:
Dangote Cement recorded a 14.24% growth in revenue for Q2 2025, but this was not supported by volume expansion. In fact, both production and sales volumes declined, suggesting that the growth was largely price-driven.
The company’s total production capacity remained unchanged at 52 million metric tons, but Q2 production volume dropped by 4.27% YoY to 6.434 million tons. For the first half of the year, total production stood at 12.981 million tons, reflecting a 6% decline compared to H1 2024.
Similarly, sales volume fell by 1.39% YoY in Q2 to 6.796 million tons, bringing H1 sales volume to 13.365 million tons, down 4% from the same period last year.
This divergence—rising revenue amid falling volumes—strongly suggests that higher average selling prices were the key driver of top-line growth during the period.
Cost and profitability trends
On the cost side, while cost of sales rose only modestly, fuel and power expenses remained a significant component, totaling ₦209.99 billion in Q2.
Despite rising energy costs, the moderate increase in overheads (up 13%), coupled with slower growth in cost of sales, helped lift operating profit, with the operating profit margin improving to 38.4% in Q2 2025, up from 31.43% in Q2 2024—a 22% increase in margin performance.
Balance sheet highlights
Dangote Cement’s total assets increased to N6.617 trillion as of H1 2025, representing a N214 billion rise or 3.35% growth over six months. While the percentage increase may appear modest, the absolute growth is significant, highlighting a meaningful expansion in the company’s asset base.
Meanwhile, shareholders’ funds grew by 2.09% to N2.220 trillion. Though positive, this growth in equity and assets lags behind the explosive profit growth recorded in the same period.
The relatively slower balance sheet expansion compared to earnings growth implies improved asset utilization and potentially a more efficient capital structure, as the company appears to be generating more profit from its existing resources.
Share price performance
In 2024, Dangote Cement’s stock delivered a year-to-date (YtD) return of 49.67%.
As of Friday, July 25, 2025, the stock closed at N490, reflecting a modest YtD gain of 2.97% in 2025.
