Dangote Sugar Refinery Plc has posted its highest-ever quarterly revenue, recording N213.93 billion in Q1 2025—a 74.31% year-on-year (YoY) surge—according to its unaudited financial results. The strong performance already accounts for 32% of the company’s total revenue in 2024.
Despite the impressive top-line growth, profitability remains under strain due to surging raw material costs. The company’s cost of sales climbed to N204.67 billion, consuming 95.67% of revenue and leaving limited room to absorb other expenses. Consequently, Dangote Sugar reported a pre-tax loss of N22.63 billion, a significant improvement from the N106.86 billion loss in Q1 2024—marking a 78.82% reduction, largely due to a sharp fall in net finance costs.
Key Financial Highlights (Q1 2025 vs Q1 2024):
Revenue: N213.93 billion (+74.31% YoY)
Cost of Sales: N204.67 billion (+79.57% YoY)
Gross Profit: N9.26 billion (+5.79% YoY)
Operating Profit: N2.75 billion (-48.02% YoY)
Administrative Expenses: N6.47 billion (+84.88% YoY)
Net Finance Cost: N27.46 billion (-77.23% YoY)
Pre-Tax Loss: N22.63 billion (-78.82% YoY)
Loss After Tax: N23.65 billion (-65.72% YoY)
Loss Per Share: N1.96 (-65.49% YoY)
Total Assets: N1.045 trillion (-0.52% QoQ, +69.20% YoY)
Shareholders’ Funds: N188.58 billion (-11.14% QoQ, up from N10.25 billion YoY)
A significant portion of Dangote Sugar’s revenue comes from the Lagos market, with over 51% of sales made there. Furthermore, 65% of the company’s distribution is channelled through third-party distributors. Dangote Sugar serves a broad customer base, producing both fortified and unfortified sugar for manufacturers and retailers alike.
Despite the revenue jump, margins were squeezed by a sharp rise in raw material and administrative costs, including employee expenses, maintenance, and depreciation. Operating profit fell by nearly half to N2.75 billion.
On a brighter note, net finance costs dropped substantially—bolstered by a swing from a N102.98 billion exchange loss in Q1 2024 to a N102 million gain this quarter, alongside reduced interest payments on letters of credit. These improvements helped trim the net loss to N23.65 billion.
Balance Sheet and Market Performance
Dangote Sugar’s total assets remained stable at N1.045 trillion compared to December 2024, though they reflected a 69.2% increase from Q1 2024, indicating significant expansion over the past year. However, over 81% of assets are still debt-financed, with total borrowings rising by 50.98% YoY to N727.29 billion.
Shareholders’ equity rebounded strongly to N188.58 billion, up from N10.25 billion in Q1 2024, thanks largely to a N325.6 billion revaluation surplus from asset adjustments.
As of April 30, 2025, Dangote Sugar’s stock closed at N36.65, reflecting a 13.1% year-to-date gain.
