LAGOS, July 24, 2025
Dangote Sugar Refinery Plc has posted a net profit of ₦523.8 million for the second quarter of 2025, marking a notable turnaround from the losses recorded in the previous quarters and signalling renewed momentum in the company’s financial performance.
The Q2 result, released on the Nigerian Exchange (NGX), reflects the company’s recovery following economic headwinds, high production costs, and FX-related challenges that weighed heavily on earnings earlier in the year.
Key drivers of the return to profitability include improved sales volumes, a modest increase in refined sugar prices, and better operational efficiency. The firm also reported enhanced cost management strategies, including local sourcing of raw materials and optimisation of energy usage across its production plants.
Total revenue for Q2 stood at ₦116.8 billion, a year-on-year growth of over 14%, while gross profit rose sharply to ₦16.5 billion from ₦7.2 billion in the same quarter last year. Operating expenses, however, remained stable, suggesting improved spending discipline.
Analysts attribute part of the recovery to easing global raw sugar prices and a more stable naira, which helped curb import-related pressures on production inputs. Additionally, the company benefited from a favourable shift in consumer demand as industrial and retail buyers replenished inventories ahead of year-end festivities.
Dangote Sugar’s management reaffirmed its commitment to expansion under the Nigerian Sugar Master Plan (NSMP), noting that its Backward Integration Programme (BIP) sites in Numan, Nasarawa, and Tunga are being scaled to reduce dependence on imports and increase local production capacity.
With this quarterly profit, the company has signalled cautious optimism for the second half of 2025. However, lingering inflation, logistics constraints, and exchange rate volatility remain risks to sustained profitability.
Dangote Sugar remains one of the largest players in Nigeria’s sugar market, and its financial rebound is viewed as a bellwether for the broader FMCG and manufacturing sectors.
