In the first quarter of 2025, Dangote Cement emerged as the leading cement manufacturer in Nigeria, achieving a remarkable 60 percent gross profit margin. This performance solidified its position as the most efficient cement maker in the country, driven by strategic pricing, operational efficiency, and a vast distribution network. Despite the challenging economic landscape marked by rising energy costs and fluctuating currency values, Dangote’s ability to maintain such high profitability highlights its resilience.
The company’s competitors, including BUA Cement and Lafarge Africa, also reported strong earnings, but none were able to match Dangote’s profitability. BUA Cement posted a gross profit margin of 49.4 percent, while Lafarge Africa recorded a margin of 47.5 percent. These figures indicate that while the overall sector is profitable, Dangote continues to lead in terms of operational efficiency and cost management.
The cement sector as a whole saw a notable rise in its combined gross profit, reaching N848.6 billion in Q1 2025, a 60.2 percent increase from the previous year. Revenue for the industry grew by 37.8 percent, totaling N1.53 trillion, with Dangote leading the charge with N994.6 billion in revenue. Despite experiencing a slight decline in volume, Dangote’s ability to command the highest revenue demonstrates its strong market position.
Dangote Cement’s solid performance can be attributed to its continuous investment in modern plants and a vertical integration strategy, which enhances its production capabilities and market reach. The company has also focused on expanding its footprint across African markets, a strategy that has helped it maintain a competitive edge in the regional cement industry. Additionally, the company is making strides in sustainability, including the use of alternative fuels and the expansion of waste heat recovery infrastructure.
Looking forward, competition within the Nigerian cement sector is expected to intensify as BUA Cement and Lafarge Africa employ different strategies to capture market share. BUA has reduced its prices to stimulate demand, while Lafarge is focusing on eco-friendly cement production. With Dangote’s consistent price hikes and solid profitability, it will be interesting to see how these companies adjust to the evolving market dynamics.
Source: BUSINESS DAY