Dangote Leads with 60% Gross Profit Margin in Q1
Dangote Cement, Nigeria’s largest producer of cement and one of the country’s most capitalised firms, outperformed industry peers to become the most efficient cement maker in the first quarter of 2025.
According to the Q1 financial reports recently released, Dangote Cement reported a 60 percent gross profit margin, maintaining its leadership through a combination of strategic pricing, operational efficiency, and an expansive distribution network.
Analysts note that the company’s performance highlights its ability to weather economic headwinds, including rising energy costs and volatile currency pressures.
While other major players like BUA Cement and Lafarge Africa also reported healthy earnings, none matched Dangote’s profitability level. BUA Cement posted a gross profit margin of 49.4 percent, while Lafarge Africa recorded a 47.5 percent margin during the same period.
Gross profit margin is a profitability ratio that calculates the percentage of sales that exceeds the cost of goods sold. In other words, it measures how efficiently a company uses its materials and labour to produce and sell products profitably.
The trio made a combined gross profit of N848.6 billion in the three-month period, representing a 60.2 percent increase compared to N529.73 billion recorded in the same period last year.
The cement makers also saw their revenue rise by 37.8 percent to N1.53 trillion, up from N1.11 trillion recorded in the same period last year.
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Dangote led with the highest revenue of N994.6 billion, despite experiencing a group volume decline of 6.7 percent to 6.6Mt in Q1 2025, followed by BUA with N290.8 billion in revenue and Lafarge with N248.5 billion turnover.
Market watchers attribute Dangote’s impressive showing to its continued investment in modern plants, vertical integration strategy, and export drive across African markets.
“Dangote Cement delivered a strong and resilient performance in the first quarter of 2025, despite facing persistent macroeconomic challenges across our key markets. Group revenue rose by 21.7 percent to N994.7 billion, supported by strategic pricing initiatives, particularly in Nigeria, where revenue grew by 53.7 percent,” Arvind Pathak, Chief Executive Officer, said in the company’s earnings report.
“We made measurable progress on our sustainability journey during the quarter, with increased use of alternative fuels, expansion of waste heat recovery infrastructure, and firm steps towards our medium-term decarbonisation roadmap,” he added.
Despite the robust margins, competition within Nigeria’s cement sector is expected to intensify. BUA Cement recently slashed prices to stimulate demand, while Lafarge is ramping up investments in eco-friendly cement production to differentiate itself.
According to a report by CSL Stockbrokers, in 2024, Dangote Cement increased its ex-factory prices to N129,224 per ton, up from N80,942 per ton in 2023, while retail prices averaged N15,000 per bag.
Similarly, the report said Lafarge Africa raised its ex-factory prices by 55 percent, reaching N124,000 per ton, with retail prices averaging around N13,000 per bag. BUA Cement also saw a 56.81 percent increase in its ex-factory prices, rising to N107,100 per ton in 2024, with retail prices averaging N11,000 per bag.
“BUA Cement prices may remain lower compared to its industry counterparts, as the company aims to drive demand for its new plants,” the report said.
