Dangote Cement Nears N1tn Pre-Tax Profit Despite Rising Finance Costs

Dangote Cement Plc reported strong first-half 2026 earnings, with revenue growth offsetting rising finance costs, edging it closer to N1tn in pre-tax profit after posting a profit before tax of N981.39 billion.

The company’s unaudited financial statements for the six months ended June 30, 2026, showed that pre-tax profit rose by 34.4 per cent from N730.03 billion recorded in the corresponding period of 2025.

The strong earnings were underpinned by robust revenue growth, improved operating profitability and sustained demand across its Nigerian and Pan-African operations, although higher borrowing costs continued to pressure the bottom line.

Revenue increased to N2.51 trillion in the first half of 2026 from N2.07 trillion a year earlier, representing a 21.4 per cent increase.

Gross profit climbed to N1.59 trillion, while operating profit rose to N1.06 trillion, reflecting the company’s ability to maintain healthy margins despite higher production and distribution costs.

Profit after tax also improved significantly, rising 22.7 per cent to N638.53 billion from N520.46 billion in the first half of 2025. Earnings per share increased to N38.22 from N30.74 over the same period.

Finance costs remained a major drag on profitability, although they declined from the previous year.

The company reported finance costs of N112.11 billion, compared with N216.16 billion in the corresponding period of 2025. Interest expenses accounted for N62.79 billion, while net foreign exchange losses contributed N45.03 billion to finance costs.

Finance income, however, fell sharply to N16.25 billion from N113.26 billion in the same period last year, reflecting lower interest income and foreign exchange gains.

Domestic operations generated N1.81 trillion in revenue during the first six months of the year, while Pan-African operations contributed N775.35 billion before eliminations.

Nigeria also accounted for N1.01 trillion of the group’s operating profit, compared with N82.94 billion from Pan-African businesses.

Dangote Cement generated N1.06 trillion in net cash from operating activities during the period, up from N874.21 billion a year earlier.

The company closed the half-year with N764.86 billion in cash and cash equivalents, compared with N362.59 billion at the beginning of the year, reflecting stronger cash generation despite significant capital expenditure and loan repayments.

The group’s total assets rose to N6.62 trillion as of June 30, 2026, from N6.04 trillion at the end of 2025, while shareholders’ equity increased to N3.17 trillion.

The company continued to increase production and sales volumes during the period.

Production volume rose to 14.49 million tonnes, while sales volume increased to 14.94 million tonnes, compared with 13.37 million tonnes recorded in the corresponding period of 2025.