Dangote Sugar Refinery Plc cuts losses in 2025 as revenue surges to US$432.6M
Dangote Sugar sharply reduced its 2025 losses as revenue climbed, supported by higher prices, improved volumes, and ongoing investments in local sugar production.
NIGERIA – Dangote Sugar Refinery Plc recorded a strong revenue performance in 2025, significantly narrowing its losses as higher product prices and improved sales volumes boosted earnings despite persistent cost pressures.
According to its audited financial statements, the Lagos-based sugar refiner reported a pre-tax loss of N72.3 billion (US$47.0M) for the year ended December 31, 2025, compared with a much larger pre-tax loss of N270.9 billion (US$176.1M) in 2024.
Net loss also declined substantially to N64.1 billion (US$41.7M) from N192.6 billion (US$125.2M) recorded a year earlier.
The company’s revenue rose sharply to N665.6 billion (US$432.6M) in 2025, up from N441.5 billion (US$287.0M) in 2024, supported by price adjustments implemented to offset rising production costs and improved market demand for refined sugar products.
Cost of sales increased during the period but at a slower pace than revenue growth, lifting gross profit to N122.6 billion (US$79.7M) from N31.1 billion (US$20.2M) in the previous year.
The stronger gross profit performance indicates improved cost pass-through and operational adjustments in response to Nigeria’s challenging economic environment.
The improved results represent a partial recovery for the company after a difficult period that began in 2023, when successive currency devaluations significantly increased import costs for manufacturers dependent on dollar-denominated raw materials.
For Dangote Sugar, which relies on imported raw sugar while expanding domestic sugarcane production, the weaker naira sharply increased input costs and finance charges. These pressures weighed heavily on margins and contributed to the company’s recent loss cycle.
Finance costs remained high at N110.3 billion (US$71.7M) in 2025, although this was lower than the N210.5 billion (US$136.8M) recorded in 2024. The decline reflects reduced foreign exchange losses and some moderation in borrowing costs during the period.
Ownership of the company remains largely concentrated with Dangote Industries Limited, which holds a 66.87 percent stake, while founder Aliko Dangote directly owns 5.38 percent. The company also recorded a leadership transition during the year, with Dangote stepping down as chairman in June 2025.
Operationally, the company continues to advance its Backward Integration Project, which is designed to expand local sugarcane cultivation and reduce reliance on imported raw sugar. The initiative aligns with the national sugar development strategy aimed at strengthening domestic production capacity.
Dangote Sugar is upgrading its refinery in Numan while developing additional greenfield projects in Nasarawa State and Taraba State. The long-term plan targets the production of 1.5 million metric tonnes of locally produced sugar annually.
The company stated that by-products from the expansion will also support the production of ethanol and animal feed, potentially broadening its revenue streams.
On the balance sheet, total assets increased to N965.9 billion (US$627.8M), largely driven by property, plant and equipment valued at N613.4 billion (US$398.7M). Total liabilities declined to N836.9 billion (US$543.0M), while shareholders’ equity stood at N128.9 billion (US$83.8M) at the end of the financial year.
Dangote Sugar sharply reduced its 2025 losses as revenue climbed to N665.6 billion, supported by higher prices, improved volumes, and ongoing investments in local sugar production.
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