Dangote Cement Plc, the largest producer of building material in Africa’s most populous nation has delivered organic growth as the cement maker shields itself from fluctuations in energy prices while recording profit expansion.
The company achieved an adjusted earnings before interest taxation depreciation and amortization (EBTIDA) margin of 47.23 percent in the first six months of 2026, which is higher than 2025’s 45.60 percent.
EBITDA increased by 21.40 percent to N1.18 trillion in June 2026 from N944.90 billion as at June 2025.
Aside from spending less on input costs to produce each unit of product, Dangote Cement is shielding itself from fluctuations in energy prices.
To magnify margins, the company has upgraded its fleets with fuel-efficient or gas powered vehicles as its extensive CNG rollout across Pan-Nigerian routes is already yielding logistics savings, according to a recent report by investment house Chapel Hill Denham.
Sector players who are proactive and nimble enough to embrace alternative energy mix have refused to be susceptible to fluctuations energy prices as energy costs make up the chunk of production costs.
Dangote Cement had invested $400 million to upscale its Mugher plant in Ethiopia, a cost saving measure that is translating into operational efficiency gains.
Driven by increased realised prices, revenue spiked by 21.25 percent to N2.15 trillion as at June 2026, from N2.07 trillion as at June 2025.
Nigeria remains its strongest market, contributing 71.47 percent of the group’s total revenue in in the first six months of 2026, from 69.56 percent as at June 2025.
Total cement volumes were up 11.80 percent to 14.94 million tonnes from 13.36 million tonnes, according to data from the company’s website.
“Our performance in the first half of 2026 reflects the strong momentum we have continued to build since the start of the year. The business delivered another solid set of results, supported by higher sales volumes, disciplined execution, and sustained demand across our key markets,” said Arvind Pathak, Chief Executive Officer of Dangote Cement.
“Our export strategy continues to deliver encouraging results. During the period, export volumes from Nigeria increased by 62.3%, supported by 20 clinker shipments to regional markets. This sustained growth further strengthens Nigeria’s position as a competitive manufacturing and export hub and reflects the increasing demand for our products across West Africa,” said Pathak.
The company’s profit after tax (PAT) was up 22.73 percent to N638.53 billion in the period under review from N520.45 billion as at June 2025.
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