Dangote Sugar Refinery Plc has reported a net loss of ₦626 million for the second quarter (Q2) of 2025, despite recording a significant boost in revenue. The company’s unaudited consolidated financial statement for the period ended June 30, 2025, showed that revenue rose by 25% to ₦216.28 billion, up from ₦172.90 billion in the same quarter of 2024.
The sharp increase in revenue was driven by higher sales volume and improved market demand; however, rising operational costs continued to weigh on the company’s profitability. The cost of sales surged to ₦173.86 billion, compared to ₦163.51 billion in Q2 2024. This left gross profit at ₦42.42 billion, a significant jump from ₦9.39 billion recorded in the corresponding period last year.
Despite the gross profit improvement, finance costs of ₦35.10 billion, administrative expenses of ₦6.49 billion, and impairment losses amounting to ₦511.39 million pushed the company into the red.
The Q2 2025 results, however, reflect an improvement compared to last year’s heavy losses. In Q2 2024, Dangote Sugar posted a staggering ₦75.01 billion loss. In the current period, the loss before tax stood at ₦524 million, a sharp improvement from the ₦104.56 billion pre-tax loss in the same quarter last year.
The company’s taxation expense of ₦1.15 billion erased any potential pre-tax recovery, culminating in the reported net loss of ₦626 million. Earnings per share (EPS) came in at -5 kobo, much better than -618 kobo reported in Q2 2024.
Despite recording a net loss, Dangote Sugar’s balance sheet showed signs of resilience. Total assets grew to ₦1.03 trillion, compared to ₦714.65 billion as of June 2024, buoyed partly by a ₦325.60 billion revaluation surplus recorded in the full-year 2024.
Total liabilities stood at ₦848.28 billion, while shareholders’ equity declined to ₦184.79 billion, down from ₦212.28 billion in December 2024 due to accumulated losses.
The Q2 2025 performance signals gradual stabilisation following a turbulent 2024, where macroeconomic pressures, foreign exchange volatility, and rising production costs severely impacted the company.
Dangote Sugar has reaffirmed its commitment to expansion and job creation, with plans to generate over 75,000 jobs across its value chain as part of its long-term growth strategy. Analysts believe that the company’s recovery may hinge on cost management, improved local production, and the stabilisation of foreign exchange markets.
The Nigerian Exchange (NGX) is expected to react cautiously to the report. Investors will be watching closely to see how the company manages its finance costs in the coming quarters, especially as it continues to pursue backward integration through massive sugarcane plantations to reduce reliance on imports.