Dangote Sugar Refinery Plc has returned to profitability in the second quarter of 2025, reporting a pre-tax profit of N523.8 million, a remarkable turnaround from the N104.5 billion loss recorded in the same period last year.
The rebound slashed the group’s half-year loss to N22.1 billion, a significant recovery from the N211.4 billion loss reported in H1 2025.
Strong revenue growth helped fuel the recovery, with Q2 revenue rising 25.09% year-on-year to N216.2 billion, up from N172.8 billion in the same period last year.
This brought total revenue for the first half of the year to N430.2 billion, up 45.53% from the same period last year.
The company revealed that:
- Sugar sales to the Nigerian Bottling Company (NBC) accounted for N63.9 billion, or 31.74% of Q2 revenue.
Although cost of sales rose 6.3% to N173.8 billion, mainly driven by raw material expenses, gross profit still climbed to N42.4 billion, a 351.8% increase from N9.3 billion in Q2 2024.
Administrative expenses rose sharply to N6.4 billion, up 52.6%, but that did not stop the company from posting a significant rise in operating profit, which came in at N35.3 billion, up from just N5 billion a year earlier.
More critically, the group managed to reduce its finance costs, which had previously been a major drag on earnings.
- These costs, mostly due to exchange rate losses, fell to N35.1 billion in Q2 from N111.6 billion in the same quarter last year. This sharp reduction played a key role in helping the company return to pre-tax profitability.
On the balance sheet, total assets rose 44.56% YoY to N1.03 trillion, reflecting growth and investment. However, retained losses deepened to N149.9 billion, up from N77.1 billion in the same period of 2024.
Key Highlights (Q2 2025 vs Q2 2024)
- Revenue: N216.2 billion, +25.09% YoY
- Cost of Sales: N173.8 billion, +6.33% YoY
- Gross Profit: N42.4 billion, +351.8% YoY
- Administrative Expenses: N6.4 billion, +52.64% YoY
- Operating Profit: N35.3 billion, +602.56% YoY
- Finance Costs: N35.1 billion, -68.56% YoY
- Pre-tax Profit: N523.8 million, +100.50% YoY
- Total Assets: N1.03 trillion, +44.56% YoY
As of market close on July 23, 2025, shares of the company were priced at N60, reflecting a year-to-date gain of 84.62%.
