Dangote Cement’s 9M pre-tax profit jumps 41.5% to N1.47 trillion as finance costs fall 58%

Dangote Cement Plc announced a surge in pre-tax profit, reaching N1.47 trillion over the nine months ending September 30, 2026, marking a substantial 41.5% increase from the previous year's N1.04 trillion. The company's profit after tax climbed by 31.2% to N974.79 billion, with earnings per share reaching N58.37, up from N43.82.

These figures were revealed in the company's unaudited third-quarter financial statements submitted to the Nigerian Exchange (NGX) on October 27. The significant rise in pre-tax profit outpaced revenue growth, which increased by 19.6% to N3.77 trillion, and operating profit, which expanded by 27.8% to N1.57 trillion. This growth was primarily driven by a sharp decline in finance costs.

Revenue grew by 19.6% to N3.77 trillion, gross profit expanded by 27.7% to N2.39 trillion, and EBITDA rose by 23.7% to N1.77 trillion. Operating profit, meanwhile, increased by 27.8% to N1.57 trillion. Profit before tax also saw a 41.5% rise to N1.47 trillion, while profit after tax climbed by 31.2% to N974.79 billion. Earnings per share expanded by 33.2% to N58.37.

The company reported a total decrease in financial liabilities by 31.40% to N539.61 billion, comprising N274.54 billion in non-current financial liabilities and N265.07 billion in current financial liabilities. Cash and cash equivalents grew by 49.07% to N592.67 billion, while total assets increased by 1.82% to N6.15 trillion. Shareholders' funds rose by 2.31% to N2.68 trillion.

The pre-tax margin expanded to approximately 39.0% from 33.0%, partially offsetting net foreign exchange losses that increased to N40.77 billion in the nine months, up from N1.13 billion in the first half. The effective tax rate rose to about 33.8% from 28.6% due to the higher income tax, which grew by 67.2% to N497.71 billion. The company attributes the lower finance costs to a reduced net foreign exchange loss of N40.77 billion compared to N45.03 billion in the first half.

The company also noted that the interim tax rate is an estimate of the annual weighted rate. Haulage costs increased by 23.5% to N489.29 billion, accounting for nearly four-fifths of the selling and distribution costs, which rose by 23.6% to N618.87 billion. The company transitioned from a net debt of about N310 billion at the beginning of the period to net cash of approximately N115 billion.

Additionally, the group recorded a N160.44 billion loss on translating foreign operations, contrasting with a gain of N7.91 billion, resulting in a total comprehensive income of N814.36 billion, up from N751.17 billion in the previous period. Dangote Cement's stock closed at N1,341.90 on October 27, 2026, up 9.8% on the day, having traded about 4.29 million shares.

The stock has appreciated by more than 120% year to date, from N609.00, and about 25.8% for the month, surpassing its previous 52-week high of N1,189, with a trading range of N534.60 to N1,341.90. The market currently values the company's earnings potential, with future challenges lying in holding margins steady amidst rising materials and haulage costs, as well as managing the N2.31 trillion in commitments funded by the available cash.