Nigerian billionaire Aliko Dangote's cement sales rose 22% last quarter, profit just 4%

Dangote Cement sold considerably more cement in the second quarter and made barely any more money doing it.

Africa's largest cement producer reported sales of ₦1.3159 trillion, about $946.7 million, for the three months to June 30, up 22.2% from ₦1.0769 trillion a year earlier. Net income rose just 4.4%, to ₦322.46 billion, or $232 million, from ₦308.99 billion. Earnings per share reached ₦19.25 against ₦18.44.

The half-year figures tell a different story. Revenue for the six months came in at ₦2.5139 trillion, or $1.81 billion, up 21.4%. Net income rose 24.3% to ₦640.22 billion, about $460.6 million, from ₦514.90 billion. Earnings per share reached ₦38.22 against ₦30.74.

Almost all of that improvement arrived in the first quarter. Working back from the reported figures, first-quarter net income was roughly ₦317.76 billion against ₦205.90 billion a year earlier, growth of about 54.3%, by Billionaires.Africa's calculation. The second quarter managed 4.4%.

Revenue growth, by contrast, held steady across both quarters at roughly 20% and 22%. The divergence sits entirely in margin.

Some of that reflects the comparison rather than the performance. Dangote Cement posted an unusually strong second quarter in 2025, converting 28.7% of sales into net profit. This year the same quarter delivered 24.5%. Against a softer base the numbers would read very differently, and the first-quarter margin of 26.5% was itself an improvement on the 20.7% recorded in the opening months of 2025.

The company reported pre-tax profit of ₦421.17 billion for the first quarter, implying an effective tax charge of roughly a quarter of pre-tax earnings.

Investors have not been troubled. Shares closed unchanged at ₦1,034 on Wednesday, having gained 69.79% since the start of the year. That values the company at roughly ₦17.32 trillion, or about $12.46 billion, on approximately 16.75 billion shares in issue.

Four analysts cover the stock with a mean consensus of outperform and an average target price of ₦1,238.24, implying a further 19.75% upside from Wednesday's close.

Aliko Dangote holds close to 86% of the company through Dangote Industries, a stake worth in the region of $10.7 billion at that valuation. It remains his largest listed asset and, for now, the only one carrying a public market price.

That is about to change. Dangote Petroleum Refinery formally applied to Nigeria's Securities and Exchange Commission this week to begin an initial public offering, targeting September and a valuation of about $50 billion. Should the market agree with that number, the refinery would immediately eclipse the cement business as the more valuable of the two.

The cement company has its own listing plans. Dangote said last week he is eyeing a London listing for Dangote Cement by the end of the year, following early talks reported in May. His daughter Mariya Dangote explained the choice of London over Dubai in an interview last week, and a second venue would give the shares a hard currency price alongside the naira quote.

Dangote Cement operates across ten African countries and employs 21,418 people. Nigeria accounted for 74.4% of group sales and the rest of the continent 25.6%, on the most recent geographic breakdown available.

The group has continued to commit capital outside its home market, announcing plans in November for $1 billion of investment in Zimbabwe, and expanding gas supply agreements with NNPC in February to secure fuel for its expansion programme.

Whether the second-quarter margin compression proves temporary depends on energy costs, the naira and the pricing power the company has enjoyed through two years of Nigerian inflation. Management has issued no guidance for the second half.