Dangote Cement Plc released its half-year results for the period ended June 30, 2025, reporting a pre-tax profit of N730 billion, representing a 149% year-on-year (YoY) growth and nearly 99.7% of its entire FY 2024 pre-tax profit.
The cement giant also reported a profit after tax of N520.455 billion, up 174% YoY, exceeding the entire 2024 full-year profit by 3%.
Nairametrics earlier reported the second quarter pre-tax profits, which also rose 230% year on year to N418 billion.
This impressive bottom-line performance was fueled by a combination of top-line growth, moderation in direct and overhead costs, and reductions in finance costs.
Specifically, first-half revenue rose by 18% to N2.1 trillion, while the cost of sales grew modestly by just 2.4%, reaching N853.56 billion. This divergence significantly expanded gross profit and lifted the gross margin to 59%.
The moderate increase in overheads (up 11%), coupled with the slower growth in cost of sales, helped lift operating profit, with the operating profit margin improving to 39% in the first half, up from 31.43% in H1 2024, a 757-basis point expansion in margin performance.
Further boosting profitability, finance costs dropped by 35% YoY to N216.162 billion in the first half, as the company recorded no foreign exchange losses in Q2 2025, a stark contrast to the significant (N138 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.
This impressive earnings momentum is mirrored—though more moderately—on the balance sheet. Total assets rose to N6.617 trillion as of H1 2025, reflecting a N214 billion increase or 3.35% growth over six months. While the percentage increase may seem modest, the absolute figure highlights meaningful reinvestment and expansion of the company’s asset base.
Shareholders’ equity also grew by 2.09% to N2.220 trillion, a positive development, albeit one that trails the explosive growth in net income. This disparity suggests that Dangote Cement is becoming more efficient at generating profits from its existing capital.
In essence, the slower pace of balance sheet expansion relative to earnings signals improved asset utilization and a more optimized capital structure—factors that enhance return on equity and strengthen the company’s investment case.
Key highlights (H1 2025 vs. H1 2024):
- Revenue: N2.07 trillion +17.70% YoY
- Cost of Sales: N853.599 billion +2.43% YoY
- Gross Profit: N1.218 trillion +31.43% YoY
- Administrative expenses: N124.283 billion +25.85% YoY
- Selling and Distribution Expenses: N321.990 billion +5.56% YoY
- Operating profit: N810.978 billion +47.02% YoY
- Finance cost: N216.162 billion -34.99% YoY
- Basic EPS: N30.74 +173% YoY
- Cash and cash equivalent: N383.899 billion -14.66%.
- Total assets: N6.617 trillion +3.34%
- Shareholders Fund: N2.220 trillion, +2.09%
Insights
Surpassing the entire 2024 full-year profit in just six months suggests the company may be on track for a record-breaking year, which can boost investor confidence in its operational resilience and earnings quality.
Also, the wide gap between revenue growth (18%) and cost of sales growth (2.4%) signals strong operational efficiency. The resultant gross margin of 59% indicates that the company is keeping a larger portion of revenue as profit before overheads.
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.
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