Dangote Sugar returns to profit in H1 2026
Dangote Sugar strengthened cash generation and increased capital expenditure as it continued investing in its backward integration strategy.
NIGERIA – Dangote Sugar Refinery Plc returned to profitability during the first half of 2026 after recording strong gains from lower production costs, reduced finance expenses and favourable foreign exchange movements.
The Nigerian sugar producer reported a net profit of N41.5 billion (US$30.42M) for the six months ended June 30, 2026, compared with a loss of N24.3 billion (US$17.8M) recorded during the corresponding period in 2025.
Despite the improvement in earnings, revenue declined by 8.9% to N391.9 billion (US$287.3M) from N430.2 billion a year earlier, reflecting lower sales volumes. The company’s 50kg sugar bags remained its largest source of revenue.
Cost of sales fell by 21.3% to N298 billion (US$218.46M), supported by lower freight charges and reduced raw material costs. As a result, gross profit rose by 81.6% to N93.9 billion (US$68.8M) despite the decline in overall revenue.
Other income increased significantly to N12.1 billion from N244.9 million, mainly due to foreign exchange gains of N11.8 billion. Administrative expenses rose slightly to N13.5 billion, while lower selling and distribution costs contributed to stronger operating performance.
Operating profit increased to N92 billion, more than doubling from N38.1 billion recorded during the same period last year.
Finance costs declined by 23.6% to N47.5 billion as the company reduced its reliance on letters of credit and commercial paper, although it continued to secure additional bank financing during the reporting period.
The company also reported a fair value loss of N438.2 million on biological assets, compared with a gain of N1.9 billion in the corresponding period of 2025.
Profit before tax reached N44.1 billion, compared with a loss of N22.1 billion a year earlier, while earnings per share improved to N3.42 from a loss of N2.00 per share.
Dangote Sugar’s balance sheet also strengthened during the period. Total assets declined by 11.2% to N917.2 billion, largely because of lower cash holdings, while total liabilities fell by 12%.
Operating cash flow improved significantly to N184.5 billion from negative N23.2 billion in the first half of 2025. The company also increased capital expenditure to N47.2 billion as it continued to expand its backward integration projects.
Dangote Sugar ended the period with cash and cash equivalents of N29.2 billion after increasing investment and reducing outstanding debt obligations.
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