NIGERIA – Dangote Sugar Refinery (DSR), Nigeria’s leading sugar producer, has reported a net loss of N27.03 billion (US$16.1M) for the nine months ending September 2024.  

This decline comes despite a substantial increase in revenue, which rose to N484.4 billion (US$288.99M) from N309.7 billion (US$184.77M) in the same period in 2023.  

The after-tax loss is primarily attributed to a sharp 176 percent increase in finance costs, which surged from N108.7 billion (US$64.8M) to N300.2 billion (US$179.1M) during the reviewed period. 

The company’s net finance cost reached N293.2 billion (US$174.9M), up from N101.5 billion (US$60.55M) in 2023, compounded by a decline in financial income, which fell to US$4.13 million from US$4.32 million.  

These mounting costs and a volatile sugar market have placed considerable pressure on DSR’s financial position, impacting its stock value, which declined by 18.67 percent from N45.00 (US$0.027) in May to N36.60 in August 2024.  

The company attributed the decline to disruptions in the supply chain and fluctuating sugar prices. 

Despite these challenges, DSR’s assets grew to US$398.29 million from US$367.8 million, while its total liabilities surged to US$460.99 million from US$292.69 million.  

DSR has also appointed Arnold Ekpe as an Independent Non-Executive Director on its Board, a move expected to bring seasoned leadership to the company.  

Ekpe has over 30 years of experience in African and international banking and has been influential in shaping Africa’s banking sector.  

His roles on various boards, including as Chairman of Baobab Microfinance Group and the Business Council for Africa in the UK, reflect his dedication to African economic development and entrepreneurship. 

With a refining capacity of 1.44 million metric tonnes annually, DSR holds approximately 55 percent of Nigeria’s retail sugar market share.  

The company continues its backward integration plan with aims to achieve 0.7 million metric tonnes of refined sugar production.  

DSR has also expanded its out-grower scheme and is enhancing its supply chain by increasing its warehousing and fleet, which currently stands at over 800 trucks, targeting broader markets across Nigeria and West Africa. 

DSR’s long-term goal remains focused on producing 1.5 million metric tonnes of refined sugar annually from its 47,364 hectares of sugarcane plantations. 

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