Dangote Cement posts N1.47trn profit, clears debt in nine months

Dangote Cement Plc has reported a 41.5 per cent increase in pre-tax profit to N1.47 trillion in the first nine months of 2026, while clearing its previous net debt and ending September with a positive cash position.

The cement manufacturer, majority-owned by Nigerian billionaire Aliko Dangote, recorded the profit between January and September, compared with N1.04 trillion in the corresponding period of 2025.

Profit after tax also rose by 31.2 per cent to N974.79 billion, while revenue increased by 19.6 per cent to N3.77 trillion from N3.15 trillion.

The improved earnings were supported by higher sales volumes, production cost controls and stronger operating margins across its African operations.

Dangote Cement said production costs increased by 7.9 per cent to N1.39 trillion, slower than revenue growth, helping to push gross profit margin to 63.2 per cent from 59.2 per cent.

The company also increased shareholder payouts, distributing N753.85 billion in dividends during the nine-month period, a 50 per cent rise from N502.56 billion paid in the same period last year.

Its Nigerian operations remained the largest revenue contributor, generating N2.67 trillion, representing a 22.5 per cent increase.

Domestic cement sales volumes rose by 6.4 per cent to 14.1 million tonnes, while exports of finished cement and clinker from Nigeria increased by 41.8 per cent to 1.5 million tonnes through 26 shipments to regional markets.

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Revenue from the company’s pan-African operations grew by 12.6 per cent to N1.19 trillion, as sales volumes increased by 14 per cent to 9.1 million tonnes.

The company recorded double-digit volume growth in Senegal, Ethiopia and Congo, alongside additional sales from Ivory Coast. However, weaker retail demand affected performance in Cameroon, Ghana and South Africa.

Dangote Cement, which has an installed production capacity of 55 million tonnes annually across Africa, is also advancing construction of its 6-million-tonne-per-annum integrated plant in Itori, Ogun State.

The company’s operating cash flow rose to N1.83 trillion, supporting capital investments and debt repayment during the period.

It paid down N525 billion in net debt, eliminating its previous net borrowing position of N683 billion.

Dangote Cement ended September with N51.13 billion in net cash, compared with its net debt position at the end of 2025.

Total assets stood at N6.15 trillion, up from N6.04 trillion at the end of 2025, while retained earnings increased to N1.73 trillion.