Dangote Cement profit hits N975bn, swings to net cash

Dangote Cement Plc’s profit after tax rose by 31.2 per cent to N974.8bn in the first nine months of 2026, as higher sales, improved margins and increased production strengthened the cement maker’s financial performance.

The company’s revenue increased by 19.6 per cent to N3.77tn. Its earnings before interest, taxes, depreciation and amortisation grew by 23.7 per cent to N1.77tn, while the EBITDA margin improved to 46.8 per cent from 45.3 per cent.

The improved earnings translated into stronger cash generation, with operating cash flow rising by 41.5 per cent to N1.83tn.

Dangote Cement also recorded a significant balance sheet improvement, moving from net debt of N682.9bn at the end of 2025 to a net cash position of N51.1bn by September 2026.

The company’s free cash flow of N1.26tn covered dividend payments of N753.8bn approximately 1.7 times, indicating stronger internally generated funding for shareholder distributions.

The results were approved by the board on October 27, 2026, and announced in Lagos on October 28.

The cement producer’s financial performance was supported by increased production and sales across its operations.

Group cement volumes rose by 9.4 per cent to 22.1 million tonnes during the period, while revenue growth and improved margins helped drive profitability.

Nigeria’s operations recorded EBITDA growth of 23.7 per cent to N1.60tn, with a margin of 59.8 per cent.

The company’s earnings per share increased by 33.2 per cent to N58.37, reflecting the stronger profit performance.

Dangote Cement’s Pan-African volumes rebounded by 14 per cent to 9.1 million tonnes, providing additional support to group sales.

Nigeria’s cement and clinker exports increased by 41.8 per cent to 1.5 million tonnes, with 26 clinker shipments dispatched to Ghana, Cameroon and Côte d’Ivoire.

The company also reported a 45 per cent increase in customer advances, which reached N208.4bn, indicating stronger advance payments from customers.

In Nigeria, the company said its energy mix helped moderate cash costs, with fuel and power costs increasing by only two per cent despite volume growth of 9.4 per cent.

Its alternative fuel and logistics initiatives also continued across Africa. The company commissioned 500 compressed natural gas trucks in Tanzania, while alternative fuel utilisation reached 30 per cent in Zambia and 17.2 per cent in Congo.

Dangote Cement said construction of the first phase of its 6-million-tonne-per-annum integrated plant in Itori, Ogun State, remained on schedule for commissioning.

The project forms part of the company’s medium-term plan to expand installed production capacity to 80 million tonnes annually.

The expansion could strengthen the company’s production capacity and position it to meet rising demand across Nigeria and other African markets.

The latest results highlight the cement maker’s ability to combine higher volumes with improved profitability and cash generation, while continuing to invest in additional production capacity.