Dangote Sugar Slashes Losses by 83% in H1 2025 as Revenue and Profits Surge
After a tough 2024, Dangote Sugar Refinery Plc is showing strong signs of a financial comeback. In the first half (H1) of 2025, the company managed to cut its losses by a staggering 83%, reporting a deficit of just N24.3 million compared to N144 million in H1 2024.
This marks a significant shift for Nigeria’s leading sugar producer, which has been navigating inflationary pressures, foreign exchange challenges, and rising energy costs like many of its peers in the fast-moving consumer goods (FMCG) space.
By the Numbers: Revenue Up, Losses Down
Revenue: Increased 45.53% to N430.2 million (from N285.6 million in H1 2024)
Loss Before Tax: Fell dramatically by 89.5% to N22.1 billion (from N211.4 billion)
Gross Profit: Soared 185% to N51.68 billion
Operating Profit: Jumped 269% to N38 billion
Finance Cost: Dropped to N64.97 billion (from N234.19 billion)
Finance Income: Declined to N2.86 billion (from N4.24 billion)
Total Assets: Grew to N1 trillion (from N714.65 billion)
Total Liabilities: Rose to N848.28 billion (from N779.42 billion)
Earnings Per Share (EPS): Dropped to N2.0 (from N11.86)
While the EPS decline might seem alarming at first glance, it’s largely reflective of broader market conditions and restructuring efforts. The critical takeaway? The company’s core operations are turning a corner.
Cost Control and Operational Efficiency: What’s Driving the Recovery?
The massive reduction in finance costs—down by nearly 72%—suggests strategic debt restructuring or renegotiation of loan terms. Combined with strong operational profit growth, this points to tightened internal controls and enhanced production efficiency.
Though finance income dropped significantly, this isn’t surprising in an environment where interest rates are volatile and cash management strategies are being re-optimized for resilience.
Industry Context: FMCG Resilience in a Challenging Economy
Dangote Sugar’s performance mirrors a wider trend in Nigeria’s FMCG sector: cost optimization, local sourcing, and operational streamlining are becoming essential survival tactics. With inflation still stubbornly high and FX scarcity affecting import-heavy businesses, many companies are doubling down on domestic value chains.
Compared to rivals like BUA Foods and Flour Mills of Nigeria, Dangote Sugar’s aggressive restructuring may offer a roadmap for others in the industry looking to bounce back amid macroeconomic volatility.
Looking Ahead: Can the Momentum Hold?
With assets now surpassing N1 trillion and core profits gaining ground, Dangote Sugar appears to be positioning itself for sustainable growth in the second half of 2025. If it can maintain this momentum—particularly by managing debt and navigating FX headwinds—shareholders may finally see a return to dividends and long-term profitability.
The real test will be maintaining this balance between cost control and revenue growth while adapting to shifting government policies and raw material costs.
