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A strong reduction in Nigeria cash cost due to favorable energy mix has propelled Dangote Cement Plc to profit growth as the cement maker posted record earnings.
The stability of earnings in the past three years have been driving returns, and the company has been rewarding shareholders in the form of bumper dividend payment.
The largest producer of the building material in Africa’s most populous nation posted a profit of N520.45 billion as at June 2025, which is 174.06 percent higher than 2024’s N189.90 billion.
Of course, a cost control policy that entails investment in cheaper energy sources at the factories across the continent helped add impetus to profit margins.
Cost of production that increased by 2.40 percent is lower than June’s inflation figure of 22.22 percent.
Cost of sales ratio reduced to 41.20 percent in June 2025 from 47.34 percent the previous year; this means the company spent less on input costs to produce each unit of products.
It will be recalled that Dangote Cement acquired additional 1,500 full CNG trucks to drive cost saving initiatives
Drilling down the firm’s financial statement shows the Nigeria operation is the key driver of top line (sales) growth, which validates the country’s position as a giant of Africa.
Revenues were up 17.61 percent to N2.07 trillion from N1.76 trillion the previous year.
The Nigeria operations which make up 69.59 percent of Groups saw sales increase by 45.16 percent to N1.44 trillion, as the company benefited from a hike in the price of key products.
It is expected that with the renewed interest by the government to reduce infrastructure deficits, and the amount allocated for capital expenditure in the 2025 budget, the company’s topline would be impacted positively.
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