Dangote Sugar Refinery reports US$128.8M loss in FY 24 amid rising costs, expansion plans
NIGERIA – Dangote Sugar Refinery (DSR) Plc has reported a net loss of N192.6 billion (US$128.8M) for the financial year ended December 31, 2024, marking a 161% increase from the N73.76 billion (US$49.3M) loss recorded in 2023.
The company’s audited financial statements, filed with the Nigerian Exchange Limited, revealed that its pre-tax loss widened to N270.89 billion (US$181.2M) in 2024, compared to N108.92 billion in the prior year.
Despite achieving a 51% increase in revenue to N665.69 billion (US$445.2M), up from N441.45 billion (US$295.25M) in 2023, soaring costs eroded profitability.
The cost of sales surged by 78% to US$424.4M from US$237.5M, leading to a 64% decline in gross profit, which fell to US$20.8M from US$57.7M in the previous year.
Sugar sales remained the primary revenue driver, contributing over 99% of total earnings. However, rising finance costs, which increased by 54% to US$201.5M from US$134.9M, further impacted the company’s bottom line.
Despite the mounting losses, DSR recorded a revaluation surplus of US$289.04M, boosting its total comprehensive income to US$88.9M, compared to a comprehensive loss of US$49.3M in 2023.
On the balance sheet, total assets rose by 75% to N1.05 trillion (US$702.3M), driven by an increase in property, plant, and equipment, which surged to N616.64 billion (US$412.4M) from N167.08 billion (US$111.7M)
Meanwhile, total liabilities grew by 61% to N838.61 billion (US$560.9M), primarily due to a rise in financial liabilities.
In December, the company announced plans to raise N50 billion (US$32.28 million) from the debt capital market through the issuance of Series 6 and Series 7 commercial papers under its N150 billion (US$100.3M) debt program. The proceeds are expected to support working capital and operational funding needs.
Investing towards increasing sugar production
DSR is also advancing its backward integration program, aiming to produce an additional 1.5 million metric tonnes of refined sugar from locally grown sugarcane.
Aliko Dangote, President of Dangote Group, reaffirmed the company’s commitment to ending raw sugar importation in Nigeria, with an investment exceeding US$700 million in local sugar production.
“We are actively executing the Sugar Backward Integration strategy and have committed over US$700 million to land acquisition, machinery, infrastructure, manpower, community relations, and corporate social responsibility initiatives to ensure Nigeria ends raw sugar importation,” Dangote stated.
Meanwhile, the Nigeria-China Strategic Partnership (NCSP) has initiated talks with the National Sugar Development Council (NSDC) to explore collaboration with the Chinese government.
NCSP Director General Joseph Tegbe emphasized the vast potential of Nigeria’s sugar sector, noting that the partnership aims to leverage Chinese technology and expertise to boost production, meet local demand, and expand into global markets.
The proposed collaboration will focus on deploying modern technology, converting by-products, training farmers, and facilitating technology transfer.
Additionally, it will provide access to low-interest financing to develop new sugar production estates and enhance industry growth.
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