Dangote Cement, Nigeria’s largest producer of cement and one of many nation’s most capitalised corporations, outperformed business friends to change into essentially the most environment friendly cement maker within the first quarter of 2025.
In accordance with the Q1 monetary stories lately launched, Dangote Cement reported a 60 p.c gross revenue margin, sustaining its management by means of a mixture of strategic pricing, operational effectivity, and an expansive distribution community.
Analysts word that the corporate’s efficiency highlights its capacity to climate financial headwinds, together with rising vitality prices and risky foreign money pressures.
Whereas different main gamers like BUA Cement and Lafarge Africa additionally reported wholesome earnings, none matched Dangote’s profitability stage. BUA Cement posted a gross revenue margin of 49.4 p.c, whereas Lafarge Africa recorded a 47.5 p.c margin throughout the identical interval.
Gross revenue margin is a profitability ratio that calculates the share of gross sales that exceeds the price of items offered. In different phrases, it measures how effectively an organization makes use of its supplies and labour to supply and promote merchandise profitably.
The trio made a mixed gross revenue of N848.6 billion within the three-month interval, representing a 60.2 p.c enhance in comparison with N529.73 billion recorded in the identical interval final yr.
The cement makers additionally noticed their income rise by 37.8 p.c to N1.53 trillion, up from N1.11 trillion recorded in the identical interval final yr.
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Dangote led with the very best income of N994.6 billion, regardless of experiencing a gaggle quantity decline of 6.7 p.c to six.6Mt in Q1 2025, adopted by BUA with N290.8 billion in income and Lafarge with N248.5 billion turnover.
Market watchers attribute Dangote’s spectacular displaying to its continued funding in fashionable vegetation, vertical integration technique, and export drive throughout African markets.
“Dangote Cement delivered a powerful and resilient efficiency within the first quarter of 2025, regardless of going through persistent macroeconomic challenges throughout our key markets. Group income rose by 21.7 p.c to N994.7 billion, supported by strategic pricing initiatives, notably in Nigeria, the place income grew by 53.7 p.c,” Arvind Pathak, Chief Govt Officer, mentioned within the firm’s earnings report.
“We made measurable progress on our sustainability journey through the quarter, with elevated use of different fuels, enlargement of waste warmth restoration infrastructure, and agency steps in direction of our medium-term decarbonisation roadmap,” he added.
Regardless of the sturdy margins, competitors inside Nigeria’s cement sector is predicted to accentuate. BUA Cement lately slashed costs to stimulate demand, whereas Lafarge is ramping up investments in eco-friendly cement manufacturing to distinguish itself.
In accordance with a report by CSL Stockbrokers, in 2024, Dangote Cement elevated its ex-factory costs to N129,224 per ton, up from N80,942 per ton in 2023, whereas retail costs averaged N15,000 per bag.
Equally, the report mentioned Lafarge Africa raised its ex-factory costs by 55 p.c, reaching N124,000 per ton, with retail costs averaging round N13,000 per bag. BUA Cement additionally noticed a 56.81 p.c enhance in its ex-factory costs, rising to N107,100 per ton in 2024, with retail costs averaging N11,000 per bag.
“BUA Cement costs might stay decrease in comparison with its business counterparts, as the corporate goals to drive demand for its new vegetation,” the report mentioned.
