Dangote Sugar Refinery Plc recorded a strong rebound in the third quarter of 2025, posting a pre-tax profit of N13.38 billion, a sharp turnaround from the N64.16 billion loss reported in Q3 2024.
This quarterly rebound helped trim the company’s nine-month loss to N8.7 billion in 2025, an improvement from N275.5 billion in the previous year, according to its unaudited results.
A cursory look shows that the improved results were driven by steady revenue growth, higher other income, and a significant decline in finance costs relative to revenue.
Key Highlights (Q3 2025 VS Q3 2024)
- Revenue: N196.02 billion (Up 3.8% YoY from N188.80 billion)
- Gross Profit: N38.38 billion (Up significantly YoY from N1.68 billion)
- Operating Profit: N43.02 billion (Compared to a loss of N2.16 billion in Q3 2024)
- Finance Cost: N30.61 billion (Down from N65.98 billion YoY)
- Profit Before Tax: N13.38 billion (Compared to a loss of N64.16 billion YoY)
- Profit After Tax: N13.68 billion (Compared to a loss of N40.34 billion YoY)
Modest revenue growth, strong margin rebound
Dangote Sugar’s Q3 2025 revenue rose by 3.8% year-on-year to N196.02 billion from N188.80 billion in the same period last year, reflecting a modest growth.
However, the cost of sales dropped to N157.64 billion in Q3 2025 from N187.12 billion a year earlier. This sharp 15.8% decline in direct costs lifted gross profit to N38.38 billion — a dramatic recovery from just N1.68 billion in Q3 2024.
- Gross margin improved to 19.6%, up from a razor-thin 0.9% in the prior year period, reflecting cost efficiency.
The results show that while top-line growth was modest, profitability rebounded strongly as the company maintained tight cost control.
Operating profit rebounds after prior-year loss
Dangote Sugar recorded an operating profit of N43.02 billion in Q3 2025, compared to an operating loss of N2.16 billion in the same quarter last year.
- Other income rose sharply to N12.49 billion from N461 million in Q3 2024, largely supported by exchange gains.
Administrative expenses increased to N7.57 billion from N4.08 billion a year earlier, while impairment charges came in at N134.4 million, up from N47.6 million.
Despite higher administrative costs, other income drove a solid swing to positive operating performance year-on-year.
Lower finance costs drive profit recovery
The group’s Q3 2025 profit was boosted by a sharp drop in finance costs.
- Finance cost fell 53.6% to N30.61 billion from N65.98 billion in Q3 2024, while finance income declined to N480.1 million from N2.69 billion.
- This resulted in a net finance cost of N30.13 billion, down from N63.30 billion a year earlier, easing pressure on the bottom line.
The company also recorded a fair value gain of N497.8 million, slightly below the N1.29 billion posted in Q3 2024.
Consequently, profit before tax rose to N13.38 billion in Q3 2025, reversing a loss of N64.16 billion in the same quarter last year. Profit after tax also improved to N13.68 billion, compared to a loss of N40.34 billion in Q3 2024.
Balance sheet snapshot
Dangote Sugar’s balance sheet expanded across key assets, though debt remains high.
- Total assets rose 52% year-on-year to N1.01 trillion, with property, plant, and equipment of N615.6 billion accounting for the bulk.
- Total liabilities increased 6% to N817.15 billion, mainly due to higher lease obligations and trade payables.
- Equity improved to N198.46 billion from a negative N105.11 billion last year, supported by revaluation gains.
As of October 31, 2025, the company’s shares were priced at N60.50, reflecting a year-to-date gain of 86%.
