Dangote Cement, BUA Cement and Lafarge Africa recorded strong profit growth of up to 117 per cent in the first quarter of 2026, as rising revenue and improved efficiency lifted their earnings compared to the same period in 2025.
A review of the financial statements of seven banks for the period ended March 31, 2026, however, shows that foreign exchange pressure and rising costs persisted.
The three companies all reported higher sales and stronger top-line performance, which flowed through to their bottom lines at different levels.
Strong Volume Growth, Cost Discipline Lift Dangote’s Profit
While Dangote Cement posted a 53.5 per cent increase in profit after tax, BUA Cement recorded the biggest jump of 117.4 per cent, and Lafarge Africa followed closely with a 101.4 per cent rise, showing a broad-based recovery across the sector.
Dangote Cement, the largest producer, maintained its lead with revenue rising by 20.4 per cent to ₦1.198 trillion from ₦994.66 billion. This growth was supported by a 13.7 per cent increase in sales volumes to 7.47 million tonnes.
Profit after tax climbed to ₦321.10 billion, up 53.5 per cent, while profit before tax rose by 35 per cent to ₦421.17 billion.
Gross profit and operating profit also grew by 27.6 per cent and 27.4 per cent respectively, as revenue increased faster than production costs, which rose by 10.2 per cent.
Finance costs declined to ₦98.25 billion from ₦129.38 billion, further supporting earnings, while earnings per share improved from ₦12.29 to ₦19.14.
Cost Control, FX Gains Drive BUA’s Earnings Surge
BUA Cement delivered the strongest growth in profit, with its earnings more than doubling during the period. Revenue increased by 22.1 per cent to ₦354.98 billion, but profit after tax rose faster, jumping by 117.4 per cent to ₦176.38 billion. Profit before tax also surged by 93.2 per cent to ₦192.68 billion.
The strong performance was driven by a 45.5 per cent increase in gross profit, supported by disciplined cost control as the cost of sales remained almost unchanged.
The company also benefited from a sharp rise in finance income and recorded a net exchange gain of ₦13.01 billion, compared to a loss in Q1 2025. Earnings per share rose significantly from 239.56 kobo to 520.83 kobo.
Revenue Expansion Pushes Lafarge’s Profit Up Despite FX Losses
Lafarge Africa also posted a major improvement, with profit more than doubling in the quarter. Revenue grew by 34.8 per cent to ₦334.88 billion, while profit after tax increased by 101.4 per cent to ₦97.95 billion.
Profit before tax rose by 104 per cent to ₦149.12 billion, and operating profit nearly doubled.
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Gross profit surged by 67.1 per cent, as production costs rose only slightly despite the strong increase in revenue.
Finance income increased significantly, although the company recorded a ₦4.42 billion unrealised foreign exchange loss, which pushed up finance costs, and earnings per share rose from 302 kobo to 608 kobo.
Challenges Faced
Despite the strong profit growth, all three companies faced similar challenges during the quarter. Foreign exchange volatility remained a major factor, with Dangote Cement recording a net foreign exchange loss of ₦13.21 billion, while Lafarge Africa also posted a ₦4.42 billion unrealised loss.
BUA Cement recorded a net exchange gain during the period but had posted a loss in the previous year, showing how unstable the environment remains.
Rising operating costs also affected performance as Dangote Cement spent ₦135.82 billion on haulage and distribution, while its administrative expenses rose by 38 per cent to ₦71.58 billion.
Lafarge Africa’s administrative costs nearly doubled to ₦22.64 billion, and BUA Cement saw raw material costs increase sharply from ₦2.52 billion to ₦27.31 billion.
Each company also faced its own specific pressures, with Dangote Cement having contingent liabilities of ₦455.8 billion linked to ongoing legal cases and classified its operations in Sierra Leone as operating in a hyperinflationary economy.
It also recorded plant maintenance costs of ₦41.06 billion. BUA Cement continues to carry high finance costs, including ₦10.01 billion in interest on bank loans, and recorded an adjustment for quarry decommissioning liabilities.
Lafarge Africa, on its part, maintained a ₦13.88 billion provision for tax-related exposures, recorded impairment losses on receivables, and saw its technical service fees nearly double to ₦7.87 billion.
Commenting on the results, Dangote Cement Chief Executive Officer (CEO), Arvind Pathak, said, “Our export business continues to scale rapidly, with volumes from Nigeria up 71.6 per cent and 10 clinker shipments completed in the quarter.
“This performance reinforces our strategic position as Africa’s leading cement exporter. Following the commissioning of our 3Mta grinding plant in Côte d’Ivoire, I am proud to say we are progressing well with our expansion projects in Itori and Ethiopia, alongside other growth initiatives across the continent.
“These investments will further strengthen our footprint and keep us firmly on track to reach 80Mt of production capacity by 2030.”
His counterpart at Lafarge Africa, Lolu Alade-Akinyemi, said, “As we move through 2026, we will continue to leverage the industrial and technical expertise of Huaxin Building Materials Ltd to further improve our operations and unlock efficiency gains.
“The focus remains disciplined capital deployment and tight cost control, while unlocking opportunities that align with our growth priorities. With a resilient operating platform and clear strategic direction, we are well-positioned to deliver consistent, long-term value.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X