Dangote Sugar Refinery Plc has launched its unaudited Q1 2025 {financial} outcomes, reporting a record-high quarterly income of N213.93 billion, up 74.31% year-on-year.
Notably, this determine already represents 32% of the corporate’s whole income for the total yr 2024.
Regardless of the robust top-line development, profitability stays underneath stress on account of rising uncooked materials prices. In Q1 2025, the price of gross sales consumed 95.67% of income, leaving minimal room to cowl working, curiosity, and different bills.
Consequently, Dangote Sugar posted a pre-tax lack of N22.63 billion, a marked enchancment from the N106.86 billion loss in Q1 2024, reflecting a 78.82% discount in losses, supported by a decline in internet finance prices.
A lot of the firm’s income comes from the Lagos market (over 51%), and 65% of gross sales are made by means of distributors.
Dangote Sugar produces each fortified and unfortified sugar, catering to totally different market segments from massive producers to small retailers.
Whereas the corporate made positive aspects on the income facet, profitability was harm by excessive prices, particularly uncooked supplies and administrative bills like worker prices, repairs, and depreciation.
On a constructive be aware, finance prices fell sharply. Trade losses dropped from N102.98 billion in Q1 2024 to a small acquire of N102 million, and curiosity on letters of credit score additionally declined.
This helped scale back the general loss after tax to N23.65 billion, a 65.72% enchancment in comparison with the loss in Q1 2024.
Dangote Sugar’s whole property stood at N1.045 trillion on the finish of Q1 2025, remaining largely flat in comparison with December 2024, however representing a 69.20% year-on-year development.
This means the corporate has considerably expanded its asset base over the previous yr, though current quarterly development has stabilized.
Nevertheless, the corporate’s stability sheet remains to be closely loaded with debt, as liabilities make up over 81% of whole property. An enormous a part of this is because of borrowings, which rose to N727.29 billion from N481.78 billion in Q1 2024. This displays a 50.98% YoY enhance.
Shareholders’ funds noticed a restoration, leaping to N188.58 billion in Q1 2025 from simply N10.25 billion in Q1 2024.
This sharp enhance was primarily on account of a N325.6 billion revaluation surplus, possible tied to asset revaluation changes that helped enhance fairness.
Share worth efficiency
As of April 30, 2025, Dangote Sugar’s share worth closed at N36.65, representing a 13.1% year-to-date acquire.
