Dangote Cement Plc Q2 2025 – Pricing Power in Nigeria Offsets Pan Africa Weakness

Event

Dangote Cement Plc delivered a record quarter in Q2 2025, with profit after tax surging by 303% year on year to N311.21 billion from N77.23 billion. The strong bottom line was supported by a sharp reversal in foreign exchange losses, disciplined cost management and sustained pricing power in Nigeria. Group revenue rose by 14% year on year to N1.08 trillion compared with N942.71 billion in Q2 2024, largely driven by higher realised prices rather than volume growth. Profit before tax advanced by 230% year on year to N418.06 billion.

Outlook

On the cost front, the continued rollout of CNG trucks should cushion logistics expenses. Overall, we see Dangote Cement maintaining firm margins. Therefore, we upgrade our recommendation to a BUY (previously: HOLD), with a revised fair value estimate of N655.30 (previously: N480.59). At a market price of N525.10, we forecast a potential total return of 34%, inclusive of a 9% dividend yield.

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