Dangote Sugar Refinery Plc has returned to profitability, reporting N78.17 billion profit before tax for the nine months ended September 2026, compared with an N8.72 billion loss recorded in the corresponding period of 2025.
The company’s unaudited financial results showed a significant improvement in earnings despite a decline in revenue, as lower production costs helped strengthen its gross profit.
Revenue fell by 9.07 per cent to N569.41 billion from N626.24 billion recorded in the same period last year.
However, gross profit increased by 40.42 per cent to N126.47 billion, compared with N90.06 billion in the corresponding period of 2025.
The improvement reflected a substantial reduction in the cost of sales, which declined to N442.94 billion from N536.18 billion.
Profit after tax also recovered to N74.25 billion, reversing the N10.59 billion loss recorded a year earlier.
Earnings per share rose to N3.67 from a loss per share of N0.87 in the corresponding period.
The results indicate a significant turnaround in the company’s financial performance, supported by improved production margins and a reduction in financing pressures.
Debt burden drops significantly
One of the major developments in the financial statements was the sharp reduction in Dangote Sugar’s borrowings following its 2026 rights issue and debt repayments.
Total borrowings declined to N89.32 billion as of September 2026 from N736.22 billion in September 2025.
The company’s gearing ratio also dropped to 13 per cent from 371 per cent, reflecting a substantial improvement in its debt position.
The rights issue raised approximately N485.88 billion through the issuance of about 8.10 billion new ordinary shares at N60 each.
The offer, which closed in June 2026, was reported to have been oversubscribed.
The reduction in borrowings is expected to ease financing pressures, although the company still faces significant interest obligations.
Its financing expenses included N24.80 billion in accrued interest on bank loans, N14.60 billion on commercial papers and N11.76 billion on letters of credit.
Revenue remains concentrated in Lagos, North
Despite the overall decline in sales, Lagos remained Dangote Sugar’s largest market, generating N309.55 billion, representing approximately 54.4 per cent of total revenue.
Northern Nigeria contributed N212.18 billion, or about 37.3 per cent, while Western and Eastern Nigeria generated N33.45 billion and N14.23 billion, respectively.
Sales of 50kg sugar accounted for the bulk of the company’s revenue, contributing N555.10 billion.
Retail sugar generated N12.04 billion, while molasses contributed N2.11 billion.
The company also reported an increase in inventory to N180.46 billion from N130.50 billion a year earlier, while cash and cash equivalents declined to N23.80 billion from N79.88 billion.
Total assets stood at N943.20 billion as of September 2026, compared with N1.02 trillion in September 2025.
The nine-month results point to a significant financial recovery, particularly in profitability and debt reduction. However, the decline in revenue and cash balances remains an important consideration for the company’s future performance.
