Dangote Sugar Refinery Plc has released its unaudited Q1 2025 financial results, reporting a record-high quarterly revenue of N213.93 billion, up 74.31% year-on-year.
Notably, this figure already represents 32% of the company’s total revenue for the full year 2024.
Despite the strong top-line growth, profitability remains under pressure due to rising raw material costs. In Q1 2025, the cost of sales consumed 95.67% of revenue, leaving minimal room to cover operating, interest, and other expenses.
As a result, Dangote Sugar posted a pre-tax loss of N22.63 billion, a marked improvement from the N106.86 billion loss in Q1 2024, reflecting a 78.82% reduction in losses, supported by a decline in net finance costs.
Key Highlights (Q1 2025 vs Q1 2024)
- Revenue: N213.931 billion +74.31% YoY
- Cost of sales: N204.673 billion +79.57% YoY
- Gross profit: N9.257 billion +5.79% YoY
- Administrative expenses: N6.474 billion +84.88% YoY
- Operating profit: N2.753 billion -48.02% YoY
- Net finance cost: N27.463 billion -77.23% YoY
- Loss after tax: N23.648 billion –65.72% YoY
- Loss per share: N1.96 -65.49% YoY
- Total assets: N1.045 trillion -0.52%
- Shareholders’ funds: N188.579 billion -11.14%
What is behind the numbers?
Most of the company’s revenue comes from the Lagos market (over 51%), and 65% of sales are made through distributors.
Dangote Sugar produces both fortified and unfortified sugar, catering to different market segments from large manufacturers to small retailers.
While the company made gains on the revenue side, profitability was hurt by high costs, especially raw materials and administrative expenses like employee costs, repairs, and depreciation.
On a positive note, finance costs fell sharply. Exchange losses dropped from N102.98 billion in Q1 2024 to a small gain of N102 million, and interest on letters of credit also declined.
This helped reduce the overall loss after tax to N23.65 billion, a 65.72% improvement compared to the loss in Q1 2024.
Balance sheet insight
Dangote Sugar’s total assets stood at N1.045 trillion at the end of Q1 2025, remaining largely flat compared to December 2024, but representing a 69.20% year-on-year growth.
This indicates the company has significantly expanded its asset base over the past year, even though recent quarterly growth has stabilized.
However, the company’s balance sheet is still heavily loaded with debt, as liabilities make up over 81% of total assets. A big part of this is due to borrowings, which rose to N727.29 billion from N481.78 billion in Q1 2024. This reflects a 50.98% YoY increase.
Shareholders’ funds saw a recovery, jumping to N188.58 billion in Q1 2025 from just N10.25 billion in Q1 2024.
This sharp increase was primarily due to a N325.6 billion revaluation surplus, likely tied to asset revaluation adjustments that helped boost equity.
Share price performance
As of April 30, 2025, Dangote Sugar’s share price closed at N36.65, representing a 13.1% year-to-date gain.