Dangote Cement Plc Q1 2025 Result: PAT Grows +85.72% Despite Lower Volumes and Rising Cost Pressures

Key HIGHLIGHTS

Dangote Cement posted a revenue of N944.66bn in Q1 2025, a +21.7% rise from its numbers in Q1 2024. Despite a reduction in production and sales volumes, profit figures rose on the back of upward price adjustments seen in early March 2025, which improved Nigerian revenue. The Nigerian operations contributed 70% to total output of 4.6Mt, while pan-African operations contributed about 30% or 2.4Mt to total revenue. The fall in sales volume in other African countries could be attributed to currency devaluation and geopolitical disruptions. The group recorded an EBITDA growth of +49.2% from N309.48bn in Q1 2024 to N461.64bn in Q1 2025, revealing the group’s ability to maximise profit in operations.

The group’s gains on net monetary position fell as incomes dropped from inflation adjustments, thereby reducing profitability. Analysts expect that increased infrastructure development could improve earnings, but finance cost pressure on borrowings may hurt earnings growth (see Table 1 below). 

Table 1:

RATIOS

Dangote Cement’s financial ratios showed its efficiency in generating returns. However, the group experienced tighter liquidity. The debt-to-equity (D/E) ratio almost doubled, rising to 0.95x in Q1 2025 from 0.52x, reflecting increased financial leverage (see Table 2 below). 

Table 2:

VALUATION

Dangote Cement Plc’s P/E ratio and P/B ratio slipped to 39.06x and 3.40x in Q1 2025, signalling strong fundamentals relative to market perception (See Table 3 below). 

Table 3:

Share Price MOVEMENT

Dangote Cement’s share price saw a sharp rally as of January 2024, with the share price rising above N750. The Nigerian blue-chip stocks may have sparked excitement amongst investors and a possibility for strong earnings. However, this reversed as the share price saw a gradual decline from March 2024 to December 2024 to settled at N400. After the dip, the group saw a mild recovery in Q1 2025 and delivered a +50.05% capital appreciation for investors as of March 28, 2025 (see Chart 1 below). 

Investment

Chart 1:

Closing THOUGHTS

Nigeria, the largest cement producer in Sub-Saharan Africa, has created a large self-sufficient industry as it transitions into a major exporter of cement products, led mainly by Dangote Cement, BUA Cement, and Lafarge Africa. The cement business growth continues to be driven by public sector investments in road construction, housing and industrial projects, rapid urbanisation, and population growth, leading to increased demand.

Financial consulting

In Q1 2025, despite the challenging macroeconomic environment, Dangote Cement proved to be resilient. The company recorded an 85.72% year-on-year (Y-o-Y) growth in profit after tax. The group was able to reduce its foreign exchange losses. Its key financial ratios showed notable shareholder returns. The company remains a strong pillar of Nigeria’s cement industry and continues to offer stakeholder value, upside growth potential, and strategic leadership in Sub-Saharan Africa