Dangote Cement Makes N975bn Profit in Nine Months, What Drove the Growth?

Dangote Cement Plc increased its profit after tax by 31.1 per cent to N974.79 billion in the first nine months of 2026. Higher revenue, improved operating performance and lower finance costs helped the cement maker grow its earnings despite rising production and distribution expenses.

The company’s unaudited financial results for the nine months ended September 30, 2026, show that profit after tax increased from N743.26 billion recorded in the corresponding period of 2025.

Revenue also rose by 19.6 per cent, from N3.15 trillion to N3.77 trillion. Meanwhile, profit before tax climbed by 41.5 per cent to N1.47 trillion from N1.04 trillion a year earlier.

The results indicate that the company generated more revenue and retained a greater share of its earnings before tax, supported by stronger operating performance and a substantial reduction in finance costs.

Revenue growth strengthened earnings

Dangote Cement’s revenue growth was one of the major factors behind its improved financial performance.

Its Nigerian operations generated N2.67 trillion in revenue during the period, compared with N2.18 trillion in the corresponding period of 2025. This made Nigeria the company’s largest revenue contributor.

The company’s Pan-African operations, which cover markets outside Nigeria, also recorded higher revenue. Their contribution increased to N1.19 trillion from N1.06 trillion.

However, stronger revenue across these markets did not translate into improved profitability everywhere. While the Nigerian business recorded a profit of N849.40 billion for the period, Pan-African operations posted a loss of N7.86 billion, compared with a profit of N182.73 billion a year earlier.

This contrast highlights the importance of Nigeria to the group’s overall earnings.

Lower finance costs provided a major boost

Another important factor was the sharp decline in the cost of financing the company’s operations.

Dangote Cement’s finance costs fell to N120.80 billion from N286.04 billion in the corresponding period of 2025.

The reduction helped the company increase its profit before tax by 41.5 per cent, a faster rate than its revenue growth of 19.6 per cent.

Finance costs represent expenses associated with borrowings and other financing arrangements. When these expenses decline, a company can retain more of its operating earnings before accounting for tax.

Dangote Cement also reported higher operating profit, which increased by 27.8 per cent to N1.57 trillion from N1.23 trillion.

The improvement suggests that the company’s earnings growth was not driven by revenue alone. Stronger operating performance and lower financing expenses also contributed.

Rising transport costs remain a challenge

Despite the improved results, Dangote Cement faced higher production and distribution expenses.

Its production cost of sales increased to N1.39 trillion from N1.29 trillion. Selling and distribution expenses also rose by 23.6 per cent to N618.87 billion from N500.62 billion.

Haulage expenses, which cover the transportation of cement to markets, climbed to N489.29 billion from N396.08 billion.

Administrative expenses increased to N226.11 billion from N202.34 billion.

However, gross profit rose by 27.7 per cent to N2.39 trillion from N1.87 trillion. This indicates that the increase in revenue outpaced the growth in production costs, helping the company improve its overall profitability.

The figures also show that moving cement to customers remains a significant expense for the business.

Stronger cash flow supports debt reduction

Dangote Cement’s improved earnings were accompanied by stronger cash generation.

Net cash from operating activities increased to N1.83 trillion during the nine months, compared with N1.29 trillion in the same period of 2025.

Cash and cash equivalents stood at N554.54 billion at the end of September, up from N179.66 billion a year earlier.

The company also reduced its total loans and borrowings to N477.77 billion from N707.53 billion at the end of December 2025.

Its loan repayments of N992.65 billion exceeded new borrowings of N467.69 billion during the period.

These figures show that the company generated more cash from its operations while reducing its outstanding borrowings.

Dangote Cement also continued investing in its business, recording N566.72 billion in additions to property, plant and equipment during the nine months.

What the results mean for shareholders

The stronger financial performance also translated into higher earnings per share, which rose to N58.37 from N43.82.

The company paid N753.85 billion in dividends during the nine months, compared with N502.57 billion a year earlier.

Its shares also gained more than 120 per cent year-to-date as of October 27, 2026, according to market figures reported by BusinessDay.

Overall, Dangote Cement’s N974.79 billion profit reflects a combination of higher revenue, stronger operating earnings and lower finance costs.

However, the loss recorded by its Pan-African operations and rising haulage expenses remain important considerations as the company seeks to sustain its growth.