Dangote Cement Boosts Dividend After Profit Climbs 109%

Dangote Cement Plc more than doubled its pre-tax profit in 2025, driven by strong revenue growth in Nigeria and sharply lower finance costs, as Africa’s largest cement maker proposed a 50% increase in its dividend payout.
The company reported a pre-tax profit of N1.53 trillion for the year ended Dec. 31, 2025, up 109% from N732.54 billion in 2024, according to audited results filed with the Nigerian Exchange at the weekend.
Profit after tax rose 101.7% to N1.01 trillion from N503.25 billion a year earlier, while earnings per share increased to N59.86 from N29.74. The board proposed a dividend of N45 per share for 2025, compared with N30 in 2024.
Revenue climbed 20% to N4.31 trillion from N3.58 trillion, adding about N726 billion in top-line growth. Cost of sales edged down 0.68% to N1.63 trillion, supporting a 38% rise in gross profit to N2.67 trillion.
Operating profit increased 53% to N1.77 trillion from N1.16 trillion, reflecting higher revenue and improved cost management.
Chief Executive Arvind Pathak described 2025 as a “landmark year,” noting that group revenue rose 20.3% to N4.31 trillion and earnings before interest, tax, depreciation and amortisation increased 43.4% to N1.98 trillion.
He said profit after tax crossed the N1 trillion mark for the first time in the company’s history, despite a 0.9% decline in volumes to 27.5 million tonnes. The marginal drop in volumes underscored what management described as a focus on margin discipline and operating efficiency rather than pure volume expansion.
Nigeria remained the main growth engine. Domestic revenue rose 35% year on year to N2.96 trillion from N2.19 trillion, accounting for the bulk of incremental group revenue.
Pan-African operations generated about N1.35 trillion in 2025, compared with N1.39 trillion in 2024, indicating broadly stable performance outside Nigeria amid currency pressures and varied economic conditions across markets.
A key driver of the earnings surge was a sharp reduction in finance costs, which fell to N351.5 billion from N700.3 billion in 2024. The drop in borrowing costs significantly eased pressure on the income statement and helped lift pre-tax profit even as sales volumes slipped slightly.
On the balance sheet, property, plant and equipment stood at N3.9 trillion, reflecting the capital-intensive nature of cement production and the group’s footprint across Nigeria and other African markets.
Total liabilities declined to N3.42 trillion from N4.23 trillion in 2024, strengthening the company’s financial position. The N1.01 trillion in net profit supported growth in retained earnings and bolstered the capital base.
Management said the company commissioned a 3 million tonnes per annum grinding plant in Côte d’Ivoire in the third quarter. Cement and clinker exports rose 18.6%, including 34 clinker shipments to Ghana and Cameroon.
Dangote Cement also accelerated its transition to compressed natural gas trucks, deploying more than 3,000 CNG trucks as part of a plan to convert its entire logistics fleet by 2027. The shift is expected to reduce fuel costs and lower exposure to diesel price volatility.
At the close of trading on Friday, Feb. 27, 2026, shares in Dangote Cement fell 6.1% to N779 on the Nigerian Exchange, down from N829.50 at the previous close. The decline suggested the market had yet to fully price in the latest earnings release.
The stock began the year at N609 and has since gained 27.9% on that valuation. It ranks 59th on the exchange in terms of year-to-date performance.
With 16.9 billion shares outstanding and a market capitalisation of about N13.1 trillion, Dangote Cement is the third most valuable company on the Nigerian Exchange, after MTN Nigeria and BUA Foods Plc. It accounts for roughly 10.6% of total market capitalisation on the bourse.
Analysts say sustained margin expansion, lower finance costs and continued investment in export capacity will be key to maintaining earnings momentum in 2026, particularly as domestic demand and macroeconomic conditions evolve.

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