Dangote Sugar Returns to Profit With N41.51 Billion H1 Earnings

Dangote Sugar Refinery Plc returned to profitability in the first half (H1) of 2026 posting N41.51 billion in profit after tax compared with a loss of N24.27 billion in the corresponding period of 2025 as improved margins and lower finance costs helped offset a decline in revenue.

The company’s consolidated financial statements for the six months ended June 30, 2026 showed that revenue declined 8.9 percent to N391.85 billion from N430.21 billion recorded in the first half of 2025.

Despite the decline in turnover, cost of sales fell more sharply to N298.00 billion from N378.53 billion, allowing gross profit to surge 81.6 percent to N93.85 billion from N51.68 billion.

The improvement in gross profitability was accompanied by a significant increase in other income, which climbed to N12.14 billion from just N244.95 million in the comparable period.

Administrative expenses increased slightly to N13.50 billion from N12.96 billion.

The combination of stronger gross margins and higher other income lifted operating profit to N92.00 billion, representing an increase of about 141 percent from N38.10 billion recorded in H1 2025.

Dangote Sugar also benefited from a moderation in financing costs during the period. Finance costs declined 22.4 percent to N50.42 billion from N64.97 billion, while finance income stood at N2.95 billion compared with N2.86 billion a year earlier.

As a result, net finance costs narrowed to N47.47 billion from N62.11 billion.

The improved operating performance helped the sugar producer record a profit before tax of N44.09 billion, reversing the N22.11 billion pre-tax loss reported in the first half of 2025.

Following a tax expense of N2.58 billion, profit after tax settled at N41.51 billion, compared with the N24.27 billion loss recorded a year earlier.

Profit attributable to shareholders of the parent stood at N41.54 billion, while basic and diluted earnings per share improved to N3.42, compared with a loss per share of N2.00 in H1 2025.

The recovery strengthened further during the second quarter with Dangote Sugar reporting N22.36 billion in profit after tax, reversing a N626.11 million loss in the corresponding quarter of 2025.

Second-quarter revenue, however, declined to N204.07 billion from N216.28 billion. Gross profit increased to N50.75 billion from N42.42 billion, while operating profit climbed to N46.23 billion from N35.35 billion.

The company’s balance sheet showed total assets of N917.18 billion as of June 30, 2026, down from N965.93 billion at the end of December 2025.

Cash and cash equivalents declined to N29.17 billion from N52.58 billion, while financial liabilities fell to N584.15 billion from N725.21 billion recorded at June 30, 2025 and N725.31 billion when combining current and non-current financial liabilities at the end of 2025.

Shareholders’ equity improved to N170.49 billion from N128.98 billion at the end of December 2025, supported by the return to profitability during the first six months of the year.

The results point to a significant turnaround in Dangote Sugar’s underlying profitability, with improved cost management, stronger gross margins and reduced financing expenses allowing the company to return to profit despite lower revenue.