Dangote Cement has posted an impressive ₦2.07 trillion in revenue for the first six months of 2025, setting the pace for another record year in Nigeria’s manufacturing sector. The company achieved this milestone despite lower sales volumes and higher operating expenses, underlining its pricing strength and resilience.
With revenue for H1 2025 already accounting for more than 57% of last year’s full turnover, the company has reinforced its position as Africa’s largest cement producer.
Operations and Structure
Dangote Cement runs its business through two core divisions:
Dangote Cement runs its business through two core divisions:
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Nigeria Operations – overseeing domestic production, sales, and distribution.
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Pan-Africa Operations – covering subsidiaries in more than nine countries, exporting cement and clinker to meet regional demand.
Its main plants are located in Obajana (Kogi State), Gboko (Benue State), and Ibese (Ogun State), supplying millions of tonnes of cement annually.
Key Drivers of Growth
Revenue rose 17.7% year-on-year, climbing from ₦1.76 trillion in H1 2024 to ₦2.07 trillion in H1 2025. This growth came even as volumes dropped 4.08% to 13.37 million tonnes, showing that higher pricing and resilient demand outweighed lower output.
The company maintained strong operational efficiency, with an inventory turnover of 1.23x and a receivables turnover of 14.61x, reflecting faster sales and payments.
Regional and Product Performance
Cement and clinker sales made up 99.99% of total revenue, confirming the company’s reliance on its core product. By geography:
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Nigeria: ₦1.44 trillion (67.89%)
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Pan-Africa: ₦682.12 billion (32.11%)
Nigeria’s share rose from 55.12% in H1 2024, while Pan-African contribution declined slightly due to eliminations and softer demand.
Profitability Gains
Operating profit surged 47% year-on-year to ₦810.98 billion, while pre-tax profit soared 149% to ₦730.03 billion. Gross profit stood at ₦1.22 trillion, with a margin of 58.8%.
Finance costs dropped significantly to ₦102.91 billion from ₦307.72 billion, supported by a quadrupling of finance income. Net income margin jumped to 25.12%, compared to 10.79% last year.
Liquidity and Market Standing
Receivables grew 43% to ₦166.98 billion, inventories rose 6.96% to ₦716.29 billion, while cash and cash equivalents fell 14.66% to ₦383.90 billion.
In Nigeria, Dangote Cement remains the market leader against BUA Cement and Lafarge Africa. Globally, it competes with LafargeHolcim and HeidelbergCement, but its domestic scale gives it unmatched dominance.
Bottom Line
Dangote Cement’s half-year performance highlights its role as the backbone of Nigeria’s construction sector and a key player in Africa’s industrial growth. Turning ₦2.07 trillion sales into ₦730 billion profit in six months demonstrates the strength of its model balancing scale, pricing power, and efficiency.
The company continues to prove why it is Africa’s cement powerhouse.
Source: Nairametrics
