Dangote Sugar reports reduced Q2 loss amid revenue growth
Dangote Sugar trims quarterly losses significantly, driven by strong revenue growth and ongoing cost management efforts.
NIGERIA – Dangote Sugar Refinery Plc reported a net loss of ₦626.11 million (US$410K) in the second quarter of 2025, marking a substantial improvement from the ₦75.01 billion (US$49.18M) net loss posted in the same period last year.
The company’s unaudited consolidated financial statements for the quarter ended June 30, 2025, show continued recovery amid improved sales performance and strategic cost management.
Total revenue for the quarter reached ₦216.28 billion (US$141.8M), up from ₦172.89 billion (US$113.2M) in Q2 2024, reflecting a 25.1% year-on-year increase. The growth was attributed to sustained sales volumes and broader market reach. Gross profit rose sharply to ₦42.42 billion (US$27.8M) from ₦9.39 billion (US$,6.15M) representing a 351.9% jump.
Operating profit surged by 602%, rising from ₦5.03 billion (US$3.3M) in Q2 2024 to ₦35.35 billion (US$23.2M) in Q2 2025, supported by stronger top-line performance and a modest rise in cost of sales. The cost of sales stood at ₦173.86 billion (US$113.99M), compared to ₦163.51 billion (US$107.2M) a year earlier.
Despite the operational improvements, finance costs remained high at ₦35.10 billion (US$23M). However, this figure represents a 68.6% decrease from ₦111.66 billion (US$73.1M) recorded in Q2 2024, reflecting efforts to reduce financial burden. Net finance costs stood at ₦34.65 billion (US$22.7M).
Administrative expenses rose to US$4.25 million from US$2.79 million, while impairment losses increased significantly to US$334,953.33, up from US$72,867.20 in the same quarter last year. The rise in overheads and impairments continued to affect the company’s net margins.
Loss before tax was US$343,140.66, significantly lower than the US$68.49 million loss reported in Q2 2024. Following a tax expense of US$754,003.83, the company ended the quarter with a net loss of ₦626.11 million.
Despite the quarterly loss, the group’s total comprehensive income over the past twelve months remained positive at ₦132.98 billion, bolstered by a revaluation surplus of ₦432.17 billion reported in the 2024 fiscal year.
In May 2025, Dangote Sugar announced plans to establish a major sugar refinery in Kwame-Danso, Bono Region, Ghana.
The facility will feature a 12,000-ton-per-day sugarcane crushing capacity and cover 25,000 hectares of irrigated farmland, producing refined sugar, molasses, and ethanol.
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