Dangote Cement Plc has announced an impressive ₦2.07 trillion in revenue for the first half of 2025, reaffirming its position as Africa’s largest cement producer and a dominant force in Nigeria’s manufacturing sector.
The figure, which already represents 57.86% of 2024’s full-year turnover (₦3.58 trillion), puts the company on track for another record-breaking year, despite challenges of rising costs and lower sales volumes.
Profits almost tripled year-on-year, with net income margins improving to 25.12%, compared to 10.79% in H1 2024. This was driven by pricing power, disciplined cost management, and reduced finance expenses.
Revenue rose 17.70% YoY, reaching ₦2.07 trillion from ₦1.76 trillion in H1 2024. However, sales volume declined by 4.08%, from 13.93 million tonnes in H1 2024 to 13.37 million tonnes in H1 2025. The revenue boost reflects successful pricing adjustments and resilient demand across key markets.
Operating profit climbed 47.0% to ₦810.98 billion, while pre-tax profit surged by 149.2% to ₦730.03 billion. Gross profit also grew to ₦1.22 trillion, representing a strong 58.8% margin.
Nigeria Leads Revenue Contribution
Nigeria remained the company’s biggest market, contributing 67.89% of revenue (₦1.44 trillion), up from 55.12% in H1 2024. Pan-African operations accounted for 32.11% (₦682.12 billion), down from 44.88% in the previous year.
This highlights Dangote Cement’s dual-market strategy: dominance at home and sustained growth abroad, with operations spanning over 9 African countries including Ethiopia, Senegal, Tanzania, Ghana, and South Africa.
Business Model and Products
Dangote Cement operates two major divisions:
- Nigeria Operations – overseeing domestic production, sales, and distribution.
- Pan-African Operations – with plants and sales subsidiaries across the continent.
Its core product remains cement and clinker, contributing 99.99% of revenue, sold in 50kg bags, jumbo bags, and bulk quantities for large-scale projects.
Key Financial Highlights
- Inventory turnover ratio: 1.23x (about 2.5 times annually), a healthy industry benchmark.
- Receivables turnover: 14.61x, indicating strong collection efficiency.
- Finance costs: dropped to ₦216.16 billion (from ₦332.52 billion in 2024).
- Finance income: jumped to ₦113.26 billion, up from ₦24.79 billion last year.
- Net finance expenses: reduced to ₦102.91 billion, compared to ₦307.72 billion in 2024.
Liquidity, however, showed some pressure, with cash and cash equivalents falling by 14.66% to ₦383.90 billion.
Competition and Market Outlook
Dangote Cement remains Nigeria’s cement market leader, competing with BUA Cement and Lafarge Africa. Globally, it faces multinational rivals such as Holcim and HeidelbergCement, but its scale and dominance in Nigeria give it a competitive edge.
The company’s ability to generate ₦730 billion profit in six months underlines its robust business model and pricing power, even amid rising costs. For investors, the numbers reaffirm Dangote Cement as one of Africa’s most profitable manufacturing giants.
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