Dangote Cement Plc reported a profit after tax of N321.1 billion for the first quarter ended March 31, 2026, representing a 53.5 percent year-on-year increase from N209.2 billion in the corresponding period of 2025.
Data from the cement manufacturer’s unaudited financial statement for the period ended March 31, 2026, reveals that the strong bottom-line performance was supported by higher volumes, improved pricing, and operational efficiencies as the company scaled production capacity and deepened export penetration across its markets.
Revenue rose by 20.4 percent to N1.198 trillion from N994.7 billion in Q1 2025, reflecting a combination of increased output and stronger market execution.
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Gross profit increased to N749.3 billion from N587.4 billion, while operating profit climbed to N506.2 billion from N397.4 billion, underscoring margin resilience despite cost pressures.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 22.8 percent to N567.1 billion, supported by efficiency gains and improved cost management, particularly in energy utilisation.
Capacity expansion drives revenue growth
The company’s performance was underpinned by capacity ramp-up and stronger production output across its plants. Total installed capacity reached 55 million tonnes per annum, while group volumes increased by 13.8 percent to 7.5 million tonnes during the period.
Production volume rose to 7.2 million tonnes from 6.5 million tonnes, while sales volume increased to 7.47 million tonnes, reflecting improved plant utilisation and demand recovery.
Revenue growth was largely driven by cement and clinker sales, which accounted for virtually all of the N1.198 trillion generated in the quarter.
Arvind Pathak, Dangote Cement’s chief executive officer, said the performance reflected the company’s ability to convert operational scale into profitability.
“We have delivered an outstanding start to 2026, with revenue up 20.4 percent year-on-year to N1,198.0 billion, driven by a strong rebound in volumes. EBITDA increased by 22.8 percent, while profit after tax rose 53.5 percent,” he said.
He added that expansion projects and efficiency initiatives continued to strengthen margins and support long-term growth.
Cost pressures remained evident, with the production cost of sales rising to N448.7 billion from N407.3 billion, driven by higher fuel, power, and haulage expenses.
However, disciplined cost control and improved energy mix helped sustain profitability, particularly in the Nigerian operations, where EBITDA margin improved to 61 percent.
Export volumes also contributed significantly, with shipments from Nigeria rising 71.6 percent, reinforcing the company’s position as a regional supplier of cement and clinker.
Pan-African operations support volume growth
Outside Nigeria, Dangote Cement recorded continued expansion across its pan-African markets, with volumes rising by 19.5 percent to 2.9 million tonnes.
Pan-African revenue increased by 14.7 percent to N370.0 billion from N322.7 billion, supported by improved demand conditions and infrastructure spending across key markets.
Segment data from the financial statements show that the pan-African business contributed N369.96 billion in revenue and N33.4 billion in operating profit during the quarter.
However, profitability in the region came under pressure, with EBITDA declining by 22.5 percent to N59.3 billion due to cost increases and margin compression in some markets.
The company noted that performance across African markets was supported by infrastructure investment, macroeconomic stabilisation, and improved operational execution, although conditions varied by country.
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Despite these pressures, management maintained that ongoing investments, including new plants and expansion projects in Côte d’Ivoire, Ethiopia, and other markets, would support long-term growth.
Pathak said, “Our expansion pipeline is delivering. These investments will further strengthen our footprint and keep us firmly on track to reach 80Mt of production capacity by 2030.”