Three Nigeria’s leading cement manufacturing companies boosted their combined revenue, up by about 31% year on year in the first half of 2025 to approximately N3.2 trillion following implementations of price hikes.
A review of the industry revenue performance showed that rivalry between the cement producers increased sharply, and this caused Dangote Cement’s market share to decline while BUA, Lafarge gained weight. A slew of analysts predicted a fast recovery of cement industry performance after foreign exchange losses negatively impacted performance in 2024. The cement industry delivered an impressive financial results in the first half of 2025, CSL Stockbrokers said in an advisory note to investors .
Analysts said the industry’s total revenue for all listed cement producers rose by 30.97% year-on-year to ₦3.17 trillion, up from ₦2.42 trillion in the first half of 2024. “This robust performance was largely driven by price adjustments across the sector, with some players also recording notable volume growth”, CSL said in its note. Dangote Cement, the industry leader, played a key role in this expansion. In the period, Dangote Cement grew revenue by 17.7% year on year to ₦2.07 trillion from ₦1.76 trillion in H1 2024. BUA Cement, the second-largest producer in the market, reported 59.4% year-on-year growth in revenue, settling at ₦580.30 billion in the first half from ₦363.94 billion in the same period last year.
CSL Stockbrokers Limited said Lafarge Africa delivered the highest revenue growth among the top three, with a 74.9% year on year increase to ₦516.98 billion, compared to ₦295.58 billion in H1 2024. By revenue performance, Dangote Cement market share came at 65.36%, down from 72.72% 12 month earlier. BUA grew its market share to 18.31% from 15.04% in 12 months, according to the results. Lafarge Africa increased its footprint in the cement industry with market share rising from 12.23% of the aggregate revenue in H1-2024 to 16.32% at the end of first half of 2025. Analysts at CSL stockbrokers said these results align with expectations and highlight the sector’s continued resilience and growth potential. On the cost side, cement companies delivered commendable results despite a challenging inflationary environment.
Cost of Goods Sold (COGS), excluding depreciation, rose by 10.45% year on year to ₦1.23 trillion, a slower pace than revenue growth. Similarly, the industry’s operating Expenses (excluding depreciation) increased moderately by 15.97% to ₦554.85 billion. “In line with our expectations, cement producers recorded zero foreign exchange (FX) losses in the first half of the year, marking a significant reversal from the ₦261.20 billion in FX losses reported in the same period of 2024. This strong performance can be attributed to the relative stability in the foreign exchange (FX) market and proactive hedging strategies adopted by the companies”, CSL stated. Supported by strong Revenue growth, disciplined cost management, and zero FX losses, cement companies recorded outstanding profitability in H1 2025.
BUA Cement’s Pre-tax Profit soared by 435.3% to N214.80 billion, while Dangote Cement’s Pretax Profit was up by 149.2% to N730.03bn in H1 2025. Lafarge Africa also delivered strong Pre-tax profit growth, with earnings surging by 328.3% year-on-year to ₦199.74 billion in H1 2025.
Analysts at CSL Stockbrokers said they maintain a positive outlook for the cement sector through the remainder of 2025. Strong topline growth is expected to persist, supported by resilient cement demand and ongoing price adjustments in response to macroeconomic trends. They added that volume growth should benefit from increased capital expenditure, rising private sector participation, and government-led infrastructure projects. Additionally, CSL said cement companies are likely to continue avoiding foreign exchange (FX) losses, thanks to improved market stability and effective hedging strategies. Cost pressures are expected to remain manageable, with industry-wide cost-saving initiatives already in place. The sector is well-positioned for sustained profitability, underpinned by strong fundamentals and favourable operating conditions, the firm said.
