Dangote Sugar Refinery Plc has released its second-quarter 2025 results, reporting revenue of ₦216.28 billion. This represents a 25.09 percent increase from ₦172.90 billion in the same quarter of 2024. A major contributor to this growth was sales to the Nigerian Bottling Company, which accounted for ₦63.9 billion or 31.74 percent of total revenue. These sales were primarily recorded in the Lagos region, which remained the company’s leading market.
The company also reported a return to profitability in the quarter, with a pre-tax profit of ₦523.8 million compared to a pre-tax loss of ₦104.5 billion recorded in the same period last year. This marks a significant recovery for the company following several quarters of heavy losses.
Revenue Drivers and Institutional Clients
The company’s strong performance was driven by increased institutional volumes, particularly from industrial customers such as beverage and food manufacturers. Improved operational efficiency supported production and delivery, while demand for sugar in the domestic market remained strong. Beverage producers continued to be a major source of consistent demand, boosting overall revenue growth.
Cost of sales rose by 6.33 percent to ₦173.8 billion, but gross profit jumped by 351.8 percent to ₦42.4 billion compared to ₦9.3 billion in Q2 2024. Operating profit increased by 602.6 percent to ₦35.3 billion. Administrative expenses rose by 52.6 percent to ₦6.4 billion, but this was offset by a sharp decline in finance costs, which fell to ₦35.1 billion from ₦111.6 billion due to lower foreign exchange losses and reduced fees on letters of credit. These factors combined to drive the company back to profitability.
Half-Year Performance and Balance Sheet Overview
For the first half of 2025, Dangote Sugar posted revenue of ₦430.21 billion, up 45.53 percent from ₦295.62 billion in the same period of 2024. Despite this, the company still recorded a loss after tax of ₦24.27 billion, which was significantly lower than the ₦144 billion loss reported in the first half of 2024. Earnings per share stood at negative ₦2.00 for the half year.
Total assets rose by 44.6 percent year on year to ₦1.03 trillion. However, retained losses increased to ₦149.9 billion from ₦77.1 billion in the same period last year, reflecting the lingering effects of past losses.
Regional and Product Segmentation
Lagos remained the top regional market for Dangote Sugar, generating over ₦228 billion in sales during the first half of the year. The Northern region recorded the fastest growth, nearly doubling revenue to ₦163.4 billion. The Western and Eastern regions also contributed positively with ₦28.5 billion and ₦10 billion respectively.
Dangote Sugar operates two main product lines. The first is unfortified sugar, which is primarily sold to industrial customers such as beverage companies and pharmaceutical firms. The second is Vitamin A-fortified sugar, which is packaged in smaller sizes including 250 grams, 500 grams, and 1 kilogram for retail and household consumers. This fortified product is distributed through wholesalers, retail outlets, and micro-enterprise channels across Nigeria.
Profitability Recovery and Future Outlook
Dangote Sugar’s second-quarter performance signals a critical recovery phase driven by strong demand from institutional clients, effective cost management, and lower financing expenses. However, the company’s heavy reliance on NBC, which contributed nearly one-third of its quarterly revenue, highlights a significant customer concentration risk. Expanding its retail base and diversifying its industrial client portfolio will be vital for reducing this exposure.
Looking ahead, the focus will be on whether NBC continues to increase its purchase volumes and how quickly other regional markets can close the gap with Lagos. Continued control of finance costs and steady growth in retail sales will also be important factors in ensuring long-term profitability and stability.
Summary of Key Metrics
| Metric | Q2 2025 | Q2 2024 |
|---|---|---|
| Revenue | ₦216.28 billion (up 25.1%) | ₦172.90 billion |
| NBC Sales Contribution | ₦63.9 billion (31.74%) | Not applicable |
| Cost of Sales | ₦173.8 billion (up 6.33%) | Lower |
| Gross Profit | ₦42.4 billion (up 351.8%) | ₦9.3 billion |
| Operating Profit | ₦35.3 billion (up 602.6%) | ₦5 billion |
| Pre-tax Profit | ₦523.8 million | Negative ₦104.5 billion |
| Finance Costs | ₦35.1 billion | ₦111.6 billion |
| Total Assets (H1) | ₦1.03 trillion | Not applicable |
| Loss After Tax (H1) | Negative ₦24.27 billion | Negative ₦144 billion |
| Retained Losses (Q2) | ₦149.9 billion | ₦77.1 billion |
