Dangote Cement Plc has seen its market capitalization fall below ₦9 trillion, as investors trimmed positions despite the company’s impressive first-half 2025 earnings. Data from the Nigerian Exchange (NGX) showed the cement giant’s share price dropped from ₦577 to ₦520, with 2.598 million units valued at ₦1.35 billion changing hands.
The selloff pushed the firm’s market value down to ₦8.774 trillion. This comes shortly after Dangote Cement rebounded from earlier sell pressure to hit a new 52-week high.
Analysts note that the company’s H1 2025 performance was robust, with earnings climbing to ₦520.5 billion—well ahead of last year’s results. A review by CardinalStone Securities Limited credited the strong earnings to improved local pricing, contained cost growth, and foreign exchange gains, which helped offset headwinds across Pan-African operations.
Projections remain optimistic, with analysts forecasting sustained elevated cement prices and increased domestic demand, supported by ongoing public and private sector projects as well as growing exports.
Margins are expected to remain resilient, boosted by reduced input costs, improved procurement efficiency, and further progress in energy-saving initiatives.
CardinalStone Securities also highlighted that Dangote Cement’s phased rollout of 1,600 CNG-powered trucks is expected to lower logistics expenses in the near term. The firm projects average gross and EBITDA margins of 59.5% and 47.5% respectively, higher than previous estimates.
Analysts believe the cement company’s margin strength is anchored on structural efficiency measures, including local input substitution and expanded use of alternative fuels. With its Thermal Substitution Rate (TSR) now at 9.8%, up from 8.3% in H1 2024, the company is already seeing reduced energy cost escalation. With 11 of 17 alternative fuel projects commissioned, more cost savings are anticipated in the second half of 2025 and beyond.
