Dangote Cement Profit Soars 230%, Surpasses 2024 Earnings in Just Six Months

Dangote Cement Plc has posted its strongest half-year financial performance on record, reporting a 149% year-on-year rise in pre-tax profit to N730 billion for the period ended June 30, 2025.

The result nearly matches the company’s entire full-year pre-tax profit in 2024, signaling not only a remarkable earnings surge but also a show of operational efficiency amid volatile macroeconomic conditions.

The cement giant’s Q2 alone accounted for N418.06 billion in pre-tax profit — a 230.35% leap from the N126.55 billion recorded in the same quarter of 2024. After-tax profit in the second quarter stood at N311.21 billion, up by 303% year-on-year. Consequently, Dangote Cement’s total post-tax profit for H1 reached N520.46 billion, already 3% higher than its full-year 2024 net earnings.

This outstanding financial performance is underpinned by a combination of revenue growth, disciplined cost management, and a dramatic drop in finance costs. Q2 revenue rose by 14.24% to N1.1 trillion, while cost of sales increased only modestly by 3% to N446.29 billion, improving the company’s gross margin to 59%. More notably, finance costs fell 50% year-on-year to N104.3 billion, with no foreign exchange losses recorded in Q2 2025. This marks a sharp turnaround from the N138 billion FX loss incurred in the same period last year, which had weighed heavily on profitability.

But the strong financials come at a pivotal moment for the company.

On Friday, Aliko Dangote, Africa’s richest man and founder of Dangote Cement, officially stepped down as Chairman and Director of the company. The move signals what many analysts describe as a deliberate succession effort to ensure long-term continuity while he repositions the Dangote Group’s focus toward its most critical frontier — the oil and gas sector.

Mr Emmanuel Ikazoboh, a seasoned Independent Non-Executive Director, has been appointed as the new Chairman. The board also announced additional changes, including the retirement of Professor Dorothy Ufot and the appointment of Hajiya Mariya Aliko Dangote as a Non-Executive Director, reinforcing the family’s strategic presence within the boardroom.

In its official statement, Dangote Cement said the founder’s exit is designed to allow him to concentrate more deeply on the group’s strategic growth areas: the $19 billion Dangote Refinery, Petrochemicals, Fertiliser, and Government Relations. These sectors, according to the company, are central to the Dangote Group’s five-year expansion plan.

While Dangote’s departure has sparked some investor concern over possible instability at the cement giant, analysts largely dismissed fears of a negative impact. They note the cement business is already mature, profitable, and has a seasoned management team in place.

Many in the market interpret the leadership shake-up as a vote of confidence in Dangote Cement’s internal governance and sustainability. Some investors even expect stronger results in the second half of 2025, pointing to continued cost control, improved margins, and increasing demand across West and Central Africa.

The cement segment remains the largest contributor to Dangote Group’s overall earnings, but the billionaire entrepreneur’s pivot toward refining and energy speaks volumes about his long-term vision. By sharpening focus on the multibillion-dollar refinery complex in Lagos — which began phased operations last year — Dangote appears set on anchoring his legacy around Nigeria’s industrial transformation.

Still, his resignation as Chairman marks the end of an era at Dangote Cement, the crown jewel he built into Africa’s largest cement producer with operations in 10 countries. But with a half-year profit already surpassing the full-year performance of 2024, the company appears well-positioned to forge ahead under its new leadership, with Dangote’s blueprint still guiding its path.