Dangote Sugar Refinery Plc, a leading player in Nigeria’s sugar industry, has released its consolidated and separate financial statements for the period ended June 30, 2025. The results provide valuable insights into the company’s financial performance, highlighting both challenges and opportunities.
The company’s revenue grew significantly, reaching N430.21 billion in the six months ended June 30, 2025. However, despite the revenue growth, Dangote Sugar Refinery Plc posted a loss after tax of N24.27 billion in the six months ended June 30, 2025. High raw material costs and administrative expenses continue to impact profitability.
Dangote Sugar’s total assets stood at N1.033 trillion at the end of June 2025, representing a significant asset base. However, the company’s balance sheet is heavily loaded with debt, with liabilities making up over 81% of total assets. Borrowings rose to N735.21 billion, reflecting a significant increase in debt.
The company’s financial performance is reflected in its key financial metrics. The loss per share was N2.00, and the company’s debt-to-equity ratio is high due to significant borrowings.
Overall, Dangote Sugar Refinery Plc faces challenges in maintaining profitability due to high costs and debt levels. However, the company’s strong revenue growth and asset base expansion are positive signs. The company’s ability to manage its debt and improve profitability will be crucial in determining its long-term sustainability. With a robust market presence and strategic outlook, Dangote Sugar is well-positioned to navigate emerging market risks in Nigeria.
The company has improved its cash management ability, adjusting its debt profile in the process. This strategic move has led to a shorter cash cycle, which decreased to 102 days from 121 days. However, despite this improvement, the company’s liquidity didn’t benefit, as its current ratio sank due to a N3.7 billion bank overdraft, a significant change from having no overdraft in the previous year.
Dangote Sugar Refinery’s receivable turnover shows that the company now waits four extra days to receive payments from debtors, with days receivable increasing to 26 days from 22 days. On the other hand, the company delayed payments by 19 days longer, from 36 days to 55 days, which helped offset the increased receivable days.
The company’s inventory turnover shows improvement, with stocks spending less time in warehouses before being shipped to customers. Inventories now last 131 days, down from 135 days previously.
A positive note is that Dangote Sugar Refinery’s overall financial leverage is lower than last year, thanks to the elimination of term loans. This development makes the company more attractive to investors.
The company plans to upgrade its facilities with a significant investment commitment of N9.62 billion. This amount is substantially higher than the N1.2 billion invested in the previous year and will be used to upgrade the Ogba and Benin facilities.
Overall, Dangote Sugar Refinery’s financial performance shows a company navigating challenges while making strategic moves to improve its cash management, debt profile, and investment plans. These developments will likely interest investors and stakeholders, particularly given the company’s commitment to continuous improvement.
