Dangote Sugar Posts ₦626m Loss in Q2 2025 Despite ₦216.28bn Revenue Surge

Dangote Sugar Refinery Plc reported a consolidated net loss of ₦626.11 million in Q2 2025, a significant downturn from the ₦75.01 billion loss recorded in the same quarter last year, despite posting ₦216.28 billion in revenue.

According to the company’s unaudited consolidated and separate financial statements for the quarter ended June 30, 2025, total revenue rose to ₦216.28 billion, up from ₦172.89 billion in Q2 2024.

This represents a year-on-year growth of 25.1% and reflects sustained sales volume and improved market penetration.

Gross profit increased to ₦42.42 billion from ₦9.39 billion in Q2 2024, representing a 351.9% surge. However, increased operating costs and finance charges continued to undermine profitability.

Operating Profit Improved but Finance Costs Eroded Gains

The sugar company reported a 602% increase in operating profit from ₦5.03 billion in Q2 2024  to ₦35.35 billion in the second quarter of 2025.

The surge was driven by strong revenue performance and a moderated rise in cost of sales which stood at ₦173.86 billion, compared to ₦163.51 billion in Q2 2024.

Despite the improvement in operating earnings, finance costs remained a significant issue at ₦35.10 billion during the quarter.

However, this represents a 68.6% decline from the ₦111.66 billion recorded in Q2 2024, indicating progress in managing financial obligations. Net finance costs stood at ₦34.65 billion, continuing to weigh on profitability.

Impairment and Administrative Costs Weigh on Profitability

Administrative expenses rose to ₦6.49 billion, up from ₦4.25 billion in Q2 2024 while impairment losses surged to ₦511.39 million compared to ₦111.25 million in the same period last year. The combination of impairment charges and operating expenses compressed net margins further.

Loss Before Tax and Comprehensive Income

Loss before tax stood at ₦523.89 million, down sharply from the ₦104.56 billion reported in Q2 2024, indicating a significant improvement in the company’s financial position.

However, after a tax expense of ₦1.15 billion, the group reported a net loss of ₦626.11 million.

Despite the bottom-line loss, total comprehensive income for the group in the trailing twelve-month period remained positive at ₦132.98 billion, supported by a previously recorded revaluation surplus of ₦432.17 billion in FY 2024.

Earnings Per Share

Basic and diluted earnings per share for Q2 2025 stood at negative ₦0.05 compared to negative ₦6.18 in Q2 2024, indicating reduced loss per share and showing signs of financial recovery.

Outlook

Dangote Sugar’s performance in Q2 2025 highlights a company gradually stabilising from a turbulent fiscal 2024, despite persistent headwinds from finance costs and impairment losses.

Continued focus on cost optimisation, working capital efficiency, and market consolidation will be critical to reversing losses and sustaining growth momentum through the second half of 2025.

The ₦430.21 billion in half-year revenue and improved operational performance signal resilience in core operations.

However, achieving profitability will depend largely on debt management and reduction in finance-related obligations.