Dangote Cement has delivered one of the most remarkable financial performances in Nigeria’s manufacturing sector, posting a net profit of over N1 trillion for the 2025 financial year.

The cement giant more than doubled its profit compared to the previous year, powered by higher cement prices, improved revenue, and a sharp decline in finance costs.

According to its earnings report released on Saturday, the company’s revenue climbed 20.3 per cent to N4.3 trillion.

The surge came despite a slight drop in sales volume, reflecting the company’s ability to leverage pricing strength in a tight and competitive domestic cement market.

Higher prices offset a slight drop in sales volume

Dangote Cement sold 27.5 million tonnes during the year, marginally lower than the 27.7 million tonnes recorded previously. However, strategic price adjustments across markets helped lift overall turnover significantly.

Production and bagging rose 5.8 per cent to 55 million tonnes, meaning the company operated at roughly half of its installed capacity during the review period, a Premium Times report said.

Industry observers note that the current supply-demand structure in Nigeria’s cement market has continued to favour major producers, allowing them to maintain strong pricing power.

New cement price adjustments have already begun reflecting in several markets, reinforcing the company’s revenue expansion strategy.

Export push strengthens regional ambition

A major highlight of the year was Dangote Cement’s expanding export footprint. Cement and clinker exports from Nigeria rose by 18.6 per cent.

The company dispatched 34 shiploads of clinker to Cameroon and Ghana, strengthening its position as a regional supplier.

Chief Executive Officer Arvind Pathak said the performance aligns with the company’s goal of positioning Nigeria as a low-cost production hub for Africa.

He noted that export terminals in Apapa and Onne continue to play a strategic role in boosting regional trade and reducing reliance on intercontinental imports.

The company remains on track to meet its ambitious 10 million tonnes combined export target.

Finance cost cut drives profit explosion

Cost discipline proved central to Dangote Cement’s record-breaking results. Production cost of sales declined, while administrative and distribution expenses saw only modest increases.

The most dramatic improvement came from finance costs, which fell by half to N351.5 billion. Unlike the previous year, the company recorded no foreign exchange losses, a sharp turnaround from the N249.3 billion FX loss posted earlier.

Profit before tax soared by 109.2 per cent to N1.5 trillion, while post-tax profit surged to N1 trillion. EBITDA margin stood strong at 46 per cent, reflecting robust core profitability.

Return on equity climbed to 38.7 per cent, up significantly from 23.1 per cent, signalling stronger value creation for shareholders.

Bigger dividend for shareholders

In a move that excited investors, Dangote Cement declared a final dividend of N45 per share, representing a 50 percent increase from the previous year’s payout. The total dividend translates to a potential N759.3 billion distribution to shareholders.

The announcement underscores the company’s confidence in its financial strength and long-term growth outlook.

With cement prices firm, exports rising, and finance costs under control, Dangote Cement has reinforced its dominance in Africa’s cement industry while delivering one of the most impressive profit figures in Nigeria’s corporate history.