Dangote Cement Plc, Africa’s largest cement manufacturer and one of Nigeria’s most prominent listed companies, has announced a substantial increase in its dividend payout following a dramatic rise in profitability for the full year ended December 31, 2025. The company’s decision reflects stronger earnings performance, improved margins and confidence in future growth prospects.
The company reported a twofold leap in net profit, crossing the N1 trillion mark for the first time in its history, and proposed a final dividend of N45.00 per share, representing a 50% increase from the previous year. This impressive growth underscores the company’s resilience and strategic effectiveness in a dynamic economic landscape.
Significant Dividend Increase
Dangote Cement’s board of directors has proposed a final dividend of ₦45 per ordinary share, marking a 50 % increase compared to the prior year’s dividend. This enhancement underscores the company’s commitment to rewarding shareholders amid a period of robust financial performance.
Subject to regulatory approval, the dividend will be paid to shareholders whose names are registered by the close of business on June 17, 2026, with payments scheduled from July 2, 2026.
Market and Operational Drivers
The company’s improved performance reflects several macro and microeconomic factors:
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Pricing Power: Dangote Cement successfully implemented price increases, bolstering top-line growth despite modest volume declines in some regional markets.
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Margin Improvement: Earnings before interest, taxes, depreciation and amortisation (EBITDA), jumped significantly, lifting the margin to 46 %, compared with 38.6 % in the prior year.
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Net Debt Reduction: The company substantially reduced net debt to around ₦683 billion from ₦2.06 trillion a year earlier, strengthening its balance sheet and reducing financing risks.
Financial Performance Highlights (FY 2025)
Dangote Cement’s audited full-year results for 2025 reveal robust growth across key financial metrics. The company’s pre-tax profit doubled, soaring to N1.53 trillion, a 109% increase compared to N732.54 billion recorded in 2024. This was primarily driven by substantial revenue growth and a significant reduction in finance costs.
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Metric
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FY 2025 (Naira)
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FY 2024 (Naira)
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Change (%)
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|---|---|---|---|
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Revenue
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4.31 trillion
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3.58 trillion
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+20%
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Cost of Sales
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1.63 trillion
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1.64 trillion
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-0.68%
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Gross Profit
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2.67 trillion
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1.93 trillion
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+38.11%
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Operating Profit
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1.77 trillion
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1.16 trillion
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+53.23%
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Pre-tax Profit
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1.53 trillion
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732.54 billion
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+109.22%
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Profit After Tax
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1.01 trillion
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503.25 billion
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+101.67%
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Earnings per Share
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59.86
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29.74
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+101.28%
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Proposed Dividend
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45.00
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30.00
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+50%
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Profit after tax more than doubled to N1.01 trillion from N503.25 billion in the prior year, while earnings per share (EPS), rose to N59.86 from N29.74. This strong performance led the board to propose a final dividend of N45.00 per share for the 2025 financial year, a substantial increase from the N30.00 paid in 2024.
Management Commentary
Arvind Pathak, the Chief Executive Officer of Dangote Cement, described 2025 as a “landmark year” for the company. He highlighted that Group revenue increased by 20.3% to N4,306.7 billion, and EBITDA saw a 43.4% rise to N1,981.1 billion.
Pathak noted that the profit after tax crossing the N1 trillion mark was a historic achievement, despite a marginal 0.9% decline in volumes to 27.5 million tonnes. This indicates a strategic focus on margin discipline and cost efficiency .
The management also pointed to several key initiatives and developments during the year, including the commissioning of a 3Mta grinding plant in Côte d’Ivoire in the third quarter. Furthermore, the company reported an 18.6% increase in cement and clinker exports, which included 34 clinker shipments to Ghana and Cameroon .
A significant move towards sustainability was the acceleration of its transition to Compressed Natural Gas (CNG), trucks, with over 3,000 CNG trucks deployed and a target to convert its entire logistics fleet by 2027.
Driving the Numbers
The impressive financial results were primarily driven by a top-line growth of N726 billion, pushing revenue to N4.31 trillion from N3.58 trillion in the previous year. Nigeria remained the core growth driver, with domestic revenue increasing by 35% year-on-year to N2.96 trillion from N2.19 trillion, accounting for the majority of the incremental revenue growth at the Group level .
While Pan-African operations generated approximately N1.35 trillion in 2025, a slight decrease from N1.39 trillion in 2024, their performance remained relatively stable. Despite higher revenue, the cost of sales saw a slight decline to N1.63 trillion, contributing to a significant expansion in gross profit, which rose to N2.67 trillion. The combination of stronger revenue and improved cost management propelled operating profit by over 53% to N1.77 trillion.
A crucial factor in the surge in profitability was the sharp reduction in finance costs, which fell to N351.50 billion from N700.30 billion in 2024. This decline significantly eased pressure on earnings, enabling the pre-tax profit to more than double, even with a marginal decrease in Group volumes .
Balance Sheet Analysis and Market Reaction
On the balance sheet, Property, Plant and Equipment stood at N3.9 trillion, reflecting the capital-intensive nature of Dangote Cement’s operations across Nigeria and other African markets. The company also saw a reduction in total liabilities, which declined to N3.42 trillion from N4.23 trillion in 2024. The substantial N1.01 trillion profit bolstered retained earnings and strengthened the company’s capital base.
Despite the positive earnings release, the market reaction was somewhat muted initially. At the close of trading on Friday, February 27, 2026, Dangote Cement’s stock closed lower at N779.00 per share on the Nigerian Exchange (NGX), a 6.1% drop from its previous closing price of N829.50. This suggests that the market may not have fully priced in the latest earnings report at that time.
However, the stock has shown a year-to-date gain of 27.9% from its starting price of N609.00, ranking 59th on the NGX in terms of year-to-date performance.
With 16.9 billion shares outstanding and a market capitalization of N13.1 trillion, Dangote Cement Plc remains a dominant force, being the third most valuable stock on the NGX, contributing approximately 10.6% to the entire equity market valuation .
Conclusion
Dangote Cement’s 2025 financial results demonstrate a strong performance characterised by significant profit growth and a generous dividend hike. The company’s strategic focus on operational efficiency, cost management, and market expansion, coupled with a reduction in finance costs, has yielded impressive returns.
While the immediate market reaction was mixed, the underlying financial strength and strategic initiatives position Dangote Cement for continued leadership in the African cement industry.
