Dangote Cement Plc increased its profit after tax by 31.1 percent to N974.79 billion in the nine months ended September 2026, while the share price rose over 120 percent year-to-date.
The company’s shares crossed the N1000 mark on July 7th after the close of trading, gaining 5.40 percent from N963 per share reported the previous day. As of October 27th, the company’s stock is valued at N1,340 per share with a market capitalisation of N22.6 trillion.
The cement maker’s unaudited consolidated interim financial statements show that profit after tax rose from N743.26 billion in the corresponding period of 2025, while revenue increased by 19.6 percent to N3.77 trillion from N3.15 trillion.
Profit before tax climbed 41.5 percent to N1.47 trillion from N1.04 trillion, reflecting improved operating performance and lower finance costs during the period.
Gross profit increased by 27.7 percent to N2.39 trillion from N1.87 trillion, as revenue growth outpaced the increase in production costs. Production cost of sales rose to N1.39 trillion from N1.29 trillion.
However, selling and distribution expenses increased by 23.6 percent to N618.87 billion from N500.62 billion, largely reflecting higher haulage expenses. Haulage costs alone climbed to N489.29 billion from N396.08 billion, underscoring the high cost of moving cement to markets.
Administrative expenses also rose to N226.11 billion from N202.34 billion.
Despite these pressures, profit from operating activities increased by 27.8 percent to N1.57 trillion from N1.23 trillion, while earnings before interest, taxes, depreciation and amortisation rose to N1.77 trillion from N1.43 trillion.
Finance costs declined to N120.80 billion from N286.04 billion in the comparable period, providing additional support for profit growth. Finance income also fell sharply to N23.82 billion from N77.10 billion.
Nigerian operations drive earnings
Nigeria remained Dangote Cement’s largest revenue contributor, generating N2.67 trillion in the nine months, up from N2.18 trillion a year earlier.
The domestic business accounted for the bulk of the group’s earnings, recording operating profit of N1.48 trillion and profit for the period of N849.40 billion.
By contrast, Pan-African operations generated revenue of N1.19 trillion, compared with N1.06 trillion in the corresponding period of 2025, but recorded a loss of N7.86 billion against a profit of N182.73 billion a year earlier.
The divergence highlights the importance of the Nigerian business to group profitability and raises questions about the earnings contribution of the company’s operations outside its home market.
For the third quarter alone, group revenue rose by 16.3 percent to N1.26 trillion from N1.08 trillion, while profit after tax increased to N336.26 billion from N222.81 billion.
Earnings per share for the nine-month period rose to N58.37 from N43.82, strengthening the company’s earnings performance for shareholders.
Cash generation improves as borrowings fall
Dangote Cement generated N1.83 trillion in net cash from operating activities during the nine months, up from N1.29 trillion in the corresponding period of 2025.
Cash and cash equivalents increased to N554.54 billion at the end of September from N179.66 billion a year earlier.
The company also reduced total loans and borrowings to N477.77 billion at September 30, 2026, from N707.53 billion at the end of December 2025, according to its statement of financial position.
Loan repayments of N992.65 billion exceeded new borrowings of N467.69 billion during the period, demonstrating a net reduction in outstanding loans even as the company continued investing in its production assets.
Capital expenditure remained substantial, with additions to property, plant and equipment amounting to N566.72 billion, compared with N461.84 billion in the prior-year period.
The group also paid N753.85 billion in dividends during the nine months, up from N502.57 billion a year earlier, returning more cash to shareholders while continuing to invest in its operations.
Earlier reports indicated that the company held an investor Capital Markets Day in London on September 21, 2026, and commenced broader investor roadshows in late October 2026, aiming for an official launch in November 2026 subject to market conditions.
Chinwe Michael is a Nigerian business journalist and media professional with over 4 years of experience covering companies, financial markets, banking, fintech, economic policy, financial inclusion, and corporate affairs. She currently leads the Companies & Markets desk at BusinessDay, where she drives coverage of Nigeria’s corporate and capital markets, translates complex financial data into accessible stories, and mentors younger journalists. Prior to that, she was the head of the financial inclusion/fintech desk. With a background in banking and finance and extensive experience in media and communications, Michael has developed expertise in financial journalism, economic analysis, investigative reporting and market intelligence. Her work examines how monetary policy, corporate performance, capital flows, technology, and regulatory decisions affect businesses, investors, and households. She was selected from about 3,000 applicants as one of 20 journalists for Cohort 4 of the MTN Media Innovation Programme, gaining exposure to new approaches to journalism, technology, and media innovation. Her international journalism experience and engagement with professionals across Russia, Dubai, Saudi Arabia, and others in different sectors have further broadened her understanding of global communication and development.
