Dangote, BUA, Lafarge Record N1.53trn Revenue Amid High Cement Demand, Forex Stability

• Nigeria's cement sector posted a strong start to 2025, with total revenue reaching N1.53 trillion in Q1, driven by a stronger naira and high local demand
• Leading companies such as Dangote Cement, BUA Cement, and Lafarge Africa reported impressive year-on-year earnings growth
• Despite challenges like high energy prices and regional political instability, the cement industry benefited from forex stability and improved operational efficiency

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

Nigeria's cement sector has started 2025 with a strong performance, posting a total revenue of N1.53 trillion in the first quarter (Q1).

This surge was driven by a stronger naira, robust local demand, and successful cost-reduction measures.

The results represent a sharp recovery from the challenges faced in 2024, largely due to currency volatility.

The Central Bank of Nigeria (CBN)’s recent foreign exchange market reforms helped stabilise the exchange rate in Q1 2025, with the naira averaging N1,521.78/$1, compared to N1,621.71/$1 in the previous quarter.

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This improvement alleviated import-related expenses and minimised foreign exchange losses for key manufacturers such as BUA Cement, Dangote Cement, and Lafarge Africa, all of which reported notable year-on-year earnings growth.

Recall that Legit.ng earlier reported that the three cement producers which are listed on the Nigerian Exchange Limited (NGX) made a combined revenue of N677.34 billion in 2024.

Dangote Cement

Dangote Cement Plc reported an impressive 85.7% year-on-year increase in profit after tax (PAT), reaching N209.25 billion, with revenue rising by 21.7% to N994.66 billion.

The company holds the position as the most valuable publicly listed firm in Nigeria, with its market capitalisation rising to N8.16 trillion as of November 2024.

Although total volumes across the group fell by 6.7%, a 30.5% increase in the average price per tonne helped offset this decline.

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Nigerian operations led the growth, showing a 53.7% revenue increase, while the Pan-African performance weakened due to post-election disruptions in Senegal and liquidity issues in Ethiopia.

Despite these challenges, foreign exchange losses dropped by 72.6%, and the EBITDA margin improved to 46.2%, supported by fuel substitution and logistics cost savings.

BUA Cement

BUA Cement Plc achieved remarkable results, with earnings per share (EPS) soaring by 351.4% to N2.40, driven by an 80.5% revenue increase to N290.82 billion and a significant reduction in foreign exchange losses, which dropped by 91.7% to N836.81 million.

The company’s profit before tax (PBT) skyrocketed by 368.6% year-on-year, reaching N99.74 billion, while profit after tax (PAT) also surged by 351.4% year-on-year to N81.12 billion, after accounting for a tax expense of N18.62 billion.

Lafarge cement

Lafarge Africa Plc saw an exceptional earnings rebound, with earnings per share (EPS) soaring by 836.7% to N3.02, and profit after tax (PAT) reaching N48.64 billion, fueled by strong cement demand and a significant reduction in foreign exchange losses.

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Revenue grew by 80.3% to N248.35 billion, supported by solid sales across all product categories.

Despite high input costs, the company's EBITDA margin improved to 32.0%, demonstrating enhanced operational efficiency.

As a result, the combined revenue of the trio reached N1.533 trillion, compared to N1.17 trillion in the same period of 2024, marking an increase of 182.5%.

In response to the development, analysts pointed out that the reduction in foreign exchange losses highlights the relative stability of the naira and the lower foreign currency debt exposure of the companies.

Manufacturers are increasingly focusing on price optimisation, alternative energy sources, and logistics efficiency to safeguard margins and expand market share.

However, challenges remain, as fluctuating energy prices, rising interest rates, and political uncertainties in the region could jeopardise the sustainability of these gains, particularly in Pan-African markets.

High cement demand, high revenue

Speaking on the growth in cement sales in Nigeria despite the skyrocketing prices, Uju Nwankwo, head of research at Folix Investment, said that it reflects the high demand for infrastructure development.

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She said:

"Despite the significant rise in cement prices, it's impressive to see the steady growth in cement sales in Nigeria. This suggests that the demand for construction and infrastructure development remains high, driven by both private and public sector projects. The resilience of the market, even with financial challenges, highlights the critical role of cement in Nigeria’s ongoing urbanization and development."

She added that the trend also reflects the determination of individuals and businesses to continue building, regardless of increased costs, and prioritising development over short-term economic pressures.

Katsina billionaire begins cement production

In related news, Legit.ng reported that Katsina billionaire Dahiru Mangal has launched a new cement plant in Moba, Kogi State, with an investment of $1.5 billion.

Originally projected to cost $600 million, the price tag increased due to the depreciation of the naira.

The plant is expected to produce around 200 cement trucks per day, and industry experts predict it will create numerous direct and indirect job opportunities.

Source: Legit.ng