Dangote Cement’s 9M pre-tax profit jumps 41.5% to N1.47 trillion as finance costs fall 58%

Dangote Cement Plc reported a pre-tax profit of N1.47 trillion for the nine months ended September 30, 2026, up 41.5% from N1.04 trillion a year earlier. Profit after tax rose 31.2% to N974.79 billion, with earnings per share at N58.37, up from N43.82.

This is according to the company’s unaudited third-quarter financial statements filed with the Nigerian Exchange (NGX) on Tuesday, October 27.

The pre-tax profit grew faster than revenue, which rose 19.6% to N3.77 trillion, and faster than operating profit, which rose 27.8% to N1.57 trillion, because finance costs fell sharply.

Key highlights (9M 2026 vs 9M 2025):

• Revenue: N3.77 trillion (up 19.6% from N3.15 trillion)
• Gross profit: N2.39 trillion (up 27.7% from N1.87 trillion)
• EBITDA: N1.77 trillion (up 23.7% from N1.43 trillion)
• Operating profit: N1.57 trillion (up 27.8% from N1.23 trillion)
• Profit before tax: N1.47 trillion (up 41.5% from N1.04 trillion)
• Profit after tax: N974.79 billion (up 31.2% from N743.26 billion)
• Earnings per share: N58.37 (up 33.2% from N43.82)
• Total financial liabilities: N539.61 billion (Down 31.40% from N786.61 billion).
• This comprises N274.54 billion in non-current financial liabilities and N265.07 billion in current financial liabilities.
• Cash and cash equivalents: N592.67 billion (Up 49.07% from N397.57 billion).
• Total assets: N6.15 trillion (Up 1.82% from N6.04 trillion).
• Shareholders’ funds: N2.68 trillion (Up 2.31% from N2.62 trillion).

Driving the numbers:

Pre-tax margin widened to about 39.0% from 33.0% as gross margin improved to about 63.2% from 59.2%.

• Production costs dropped to only 7.9% at N1.39 trillion.
• Fuel and power, the largest cost, rose 2.0% to N580.49 billion, and depreciation and plant maintenance fell.
• Finance costs also fell 57.8% to N120.80 billion from N286.04 billion.
• Interest expense dropped from N281.76 billion to N102.92 billion, and N30.96 billion was capitalised, leaving N71.96 billion recognised.

This more than offset net foreign exchange losses, which rose to N40.77 billion from N1.13 billion.

Third-quarter pre-tax profit:

Comparing the nine-month results with the first-half figures suggests that third-quarter pre-tax profit was about N491.11 billion.

• This is 57.9% higher than the estimated N310.97 billion recorded in the third quarter of 2025.
• However, it is 12.3% lower than the N560.22 billion reported in the second quarter of 2026.
• The figures also suggest that third-quarter finance costs fell to about N8.7 billion, from N112.11 billion in the first half.

The lower costs may partly reflect a smaller net foreign exchange loss. The loss for the nine months was N40.77 billion, compared with N45.03 billion in the first half

Tax and segments:

Income tax rose 67.2% to N497.71 billion, lifting the effective tax rate to about 33.8% from 28.6%, which is why after-tax profit grew 31.2% against 41.5% for pre-tax profit. The company notes the interim rate is an estimate of the annual weighted rate.

• Nigeria generated revenue of N2.67 trillion (up 22.5%) and EBITDA of N1.60 trillion, about 90% of group EBITDA before central costs, but its profit for the period rose only 3.4% to N849.40 billion.
• Pan-Africa revenue rose 12.6% to N1.19 trillion and operating profit rose 64.4% to N146.46 billion, but the segment reported a loss of N7.86 billion, against a profit of N182.73 billion a year earlier.

Haulage costs rose 23.5% to N489.29 billion and make up almost four-fifths of selling and distribution costs of N618.87 billion, which rose 23.6%.

Balance sheet:

The group moved from net debt of about N310 billion at the start of the period to net cash of about N115 billion.

• Loans and borrowings fell to N477.77 billion from N707.53 billion, and commercial paper of N209.61 billion was repaid. Total financial liabilities were N539.61 billion, down 31.4%.
• Cash rose 49.1% to N592.67 billion.
• Operating cash flow rose 41.5% to N1.83 trillion, and the company paid dividends of N753.85 billion and repaid loans of N992.65 billion.
• Current liabilities of N2.75 trillion exceed current assets of N1.97 trillion, a current ratio of 0.72 times, with trade and other payables up 18.0% to N1.50 trillion.
• Capital commitments were N2.31 trillion, more than double the N1.12 trillion at December 2025.

The group also booked a N160.44 billion loss on translating foreign operations, against a gain of N7.91 billion, so total comprehensive income rose only to N814.36 billion from N751.17 billion.

Market reaction:

Dangote Cement closed at N1,341.90 on October 27, 2026, up 9.8% on the day on about 4.29 million shares traded.

The stock is up about 120.34% year to date from N609.00, and about 25.8% for the month, and has passed its previous 52-week high of N1,189, with a range of N534.60 to N1,341.90.

With the stock up more than 120% this year, the market already prices in strong earnings.

The next tests are whether margins hold as materials and haulage costs rise, and how the N2.31 trillion of commitments is funded from the cash now on hand.