Dangote Sugar Refinery Plc has published its first-quarter unaudited financial statement for 2026, reporting a profit before tax of N20.6 billion, marking a strong comeback from a N22.6 billion loss in the prior year.
The recovery was largely driven by easing production pressures, as the cost of sales declined to N144.6 billion from N204.6 billion, reflecting lower raw material input costs; alongside other income of N9.4 billion.
This occurred despite a decline in revenue, which fell 12.22% to N187.7 billion from N213.9 billion, with 50kg sugar contributing 97% of turnover, retail sales 2.5%, while molasses and freight income accounted for the remainder.
Regionally, Lagos remained the dominant market with N101 billion in sales, followed by the North at N70.5 billion, West at N11.7 billion, and the East at N4.4 billion.
On the bottom line, profit after tax rose to N19.1 billion from a N23.6 billion loss, while earnings per share improved to N1.58 from a prior loss of N1.95, reflecting stronger overall profitability.
Key highlights (Q1 2026 vs Q1 2025)
- Revenue: N187.7 billion vs N213.9 billion
- Cost of sales: N144.6 billion vs N204.6 billion
- Gross profit: N43.1 billion, up 365.6% YoY
- Other income: N9.4 billion vs N143.1 million
- Operating profit: N45.7 billion vs N2.7 billion
- Net finance costs: N26.7 billion vs N27.4 billion
- Pre-tax profit: N20.6 billion vs a loss of N22.6 billion
- Post-tax profit: N19.1 billion vs a loss of N23.6 billion
Driving the numbers
A more in-depth look at Q1 2026 shows that revenue of N187.7 billion was driven by 50kg sugar sales of N182.1 billion, retail sales of N4.6 billion, molasses of N1.03 billion, and freight income of N5.6 million.
Cost of sales declined significantly to N144.6 billion from N204.6 billion, largely due to a reduction in raw material costs, which fell from N176.9 billion to N113.9 billion, year-on-year.
- As a result, gross profit strengthened to N43.1 billion, up sharply from N9.2 billion recorded in the first quarter of 2025.
Further supporting earnings, other income rose to N9.4 billion, driven mainly by exchange gains, compared to just N143.1 million in Q1 2025.
- After accounting for selling and distribution expenses of N257.6 million and administrative expenses of N6.5 billion, operating profit rose significantly to N45.7 billion from N2.7 billion.
Following a net finance cost of N26.7 billion and a fair value adjustment of N1.7 billion, profit before tax settled at N20.6 billion, a rebound from a N22.6 billion loss.
A tax expense of N1.5 billion brought profit after tax to N19.1 billion, compared to a N23.6 billion loss in the prior year, with earnings per share settling at N1.58.
Balance sheet
On the balance sheet, total assets declined to N926.2 billion from N1.04 trillion, with property, plant and equipment remaining the largest asset class at N638.4 billion.
Accumulated losses stood at N170.6 billion, rising from N149.3 billion in Q1 2025 but improving from N189.7 billion in December 2025, contributing to a 21.45% decline in total equity to N148.1 billion.
On the liabilities side, total obligations eased to N778.1 billion from N856.8 billion, with current financial liabilities of N625 billion accounting for the bulk.
Market reaction
The market is yet to react meaningfully to the quarterly financials following their publication on 30 April 2026.
However, on a year-to-date basis, the stock remains up 20.55% on the Nigerian Exchange, currently priced at N69.70 per unit.
