Dangote Sugar Plc disclosed that sales to the Nigerian Bottling Company (NBC) accounted for 31.74% of its second-quarter 2025 revenue.
During the quarter, the company reported strong revenue of N216.2 billion, marking a 25.09% increase from N172.8 billion in the same period last year.
Of the total Q2 revenue, sugar sales to NBC contributed over N63 billion and were recorded under sales from the Lagos region, the company’s highest-performing market in Nigeria.
According to the group, it generates revenue by supplying unfortified sugar to companies in the food and beverage industry, as well as to pharmaceutical firms.
In contrast, Vitamin A-fortified sugar is sold to small wholesalers, confectioneries, and micro-enterprises that form the distribution network for Nigeria’s retail market.
A breakdown of the retail product line shows that Dangote Sugar is packaged in 250g, 500g, and 1kg sizes, targeting everyday consumers through various retail channels.
Meanwhile, sales to large-scale distributors remained a major revenue driver, accounting for 65% of the group’s total earnings.
This strong distribution performance contributed to Dangote Sugar’s impressive Q2 revenue of N216.2 billion, which helped lift its half-year total to N430.2 billion, up 45.53% compared to the same period last year.
First half revenue breakdown:
For the first half of the year, Dangote Sugar recorded total revenue of N430.2 billion.
- The bulk of this came from the sale of its 50kg sugar bags, which generated N416.8 billion, up 46.68% compared to the same period last year.
- Retail sales also grew steadily, with revenue rising to N10 billion, from N8.6 billion in the first half of 2024.
- The company earned an additional N3.2 billion from the sale of molasses, while freight income contributed N39.8 million.
Across regions, Lagos remained the company’s strongest market, with sales increasing from N180.1 billion to N228.1 billion.
The Northern region saw the fastest growth, with revenue nearly doubling to N163.4 billion, a 98.36% jump.
Sales in other western states rose to N28.5 billion from N24 billion, while the eastern region contributed N10 billion, up from N9 billion in the same period last year.
Alongside the strong revenue growth, the group also made progress in managing costs, successfully cutting down on finance expenses that had previously weighed on its earnings.
Finance cost reduction:
The company made significant progress in cost management during the second quarter, reducing finance costs to N35.1 billion, down sharply from N111.6 billion in the same period last year.
This substantial drop played a key role in restoring the company to bottom-line profitability.
As a result, total finance costs for the first half of the year fell to N64.9 billion, compared to N234.1 billion in H1 2024.
- Most of the savings came from a sharp decline in exchange losses, which were cut from N193.6 billion to N160.2 billion.
- Additional relief came from lower costs related to letters of credit, which dropped from N32.1 billion to N21.9 billion.
In Q2, after factoring in finance income of N457.4 million, net finance costs stood at just N34.6 billion, well below the N109.3 billion recorded a year earlier.
And after enduring a string of quarterly losses, Dangote Sugar finally turned the tide, posting a pre-tax profit of N523.8 million in the second quarter.
