• Dangote Cement, Africa's largest producer, grew Q1 net profit 54% to N321bn ($233m) as volumes and falling debt costs lifted earnings to a new quarterly record

• Rival BUA Cement more than doubled profit to N176bn ($128m), driven by near-flat production costs against a 22% revenue jump and a foreign exchange gain reversal

• With Brent above $107, both companies face a shared test of whether Nigeria's cement earnings recovery can absorb a fresh energy cost shock

Dangote Cement Plc, Africa's largest cement producer by installed capacity, posted the most profitable opening quarter in its history, with net profit rising 54% to 321 billion naira ($233 million, at an exchange rate of 1,375 naira per dollar) for the three months ended March 31, according to unaudited financial statements filed with the Nigerian Exchange on April 30.

Revenue rose 20% to 1.198 trillion naira ($871 million) from 995 billion naira a year earlier, as the Lagos-headquartered group, which operates across 11 African countries, shipped 7.5 million tonnes of cement and clinker, up from 6.6 million tonnes in the same period of 2025, the filing showed. Interest payments on the company's debts fell from 129 billion naira to 98 billion naira, a 24% reduction that contributed directly to bottom-line growth.

"We have delivered an outstanding start to 2026, with revenue up 20.4 percent year-on-year driven by a strong rebound in volumes," Arvind Pathak, chief executive officer of Dangote Cement since March 2023, said in the earnings release. "EBITDA increased by 22.8 percent, while profit after tax rose 53.5 percent." The results extended a milestone run: in full-year 2025, Dangote Cement crossed the one-trillion-naira net profit threshold for the first time, according to its annual report published March 2.

Analysts projected Nigeria's economy to expand around 4.4% in 2026, according to BusinessDay. Cement and telecoms together accounted for 29% of total corporate earnings on the Nigerian Exchange in the first quarter, according to a TRW Stockbrokers research note dated April 30. The company's total production capacity reached 55 million tonnes per year following the commissioning of a new plant in Côte d'Ivoire in 2025, with further expansion underway in Ethiopia, Cameroon, South Africa, Zambia and Senegal, according to the annual report.

Margin explosion

BUA Cement Plc, Nigeria's second-largest cement producer by capacity, posted an even steeper profit acceleration over the same period. The Abuja-based company reported a 117% rise in net profit to 176 billion naira ($128 million) for the quarter ended March 31, on revenue that grew 22% to 355 billion naira ($258 million), according to unaudited results filed on the Nigerian Exchange on April 23.

The driver was a near-complete decoupling of costs from revenue. Cost of sales rose just 0.67% while revenue grew 22%, pushing gross margin from 47.7% to 56.9% — a 917-basis-point expansion in a single quarter, the filing showed. Energy costs fell from 74.75 billion naira to 67.34 billion naira, while operation and maintenance charges dropped from 52.9 billion naira to 31.4 billion naira. BUA Cement also recorded a net foreign exchange gain of 13 billion naira, reversing a loss of 837 million naira in the year-earlier period, according to the filing.

"It is encouraging to see our results and organisational transformation aligning so well," Yusuf Binji, managing director of BUA Cement, said in a statement. "Considering the current geopolitical environment, our cost reduction initiatives have proven timely, safeguarding our profitability and reinforcing operational agility." Binji attributed part of the improvement to a restructuring of the company's transport operations, which faced initial disruptions but reached stability during the quarter, the statement said.

Both companies enter the second quarter facing a common test. Brent crude traded above $107 a barrel on May 5, after military disruptions to shipping in the Strait of Hormuz stemming from the US-Israel-Iran conflict lifted fuel prices. Dangote Cement acquired more than 3,000 compressed natural gas trucks during 2025 to reduce diesel dependence, according to its annual report. BUA Cement's margin gains, partly tied to a stable naira and a foreign exchange reversal that may not recur, could face more pressure if fuel and energy costs rise through the remainder of the year. Both companies are expected to report second-quarter results in the coming months.

Idriss Linge