Big Loss Hits Dangote As His Sugar Company Declines In Profit
- Dangote Sugar Refinery Plc reported a N192.6 billion loss after taxes, 161% more than the N73.76 billion loss in 2023
- Its loss before taxes jumped sharply from N108.92 billion in 2021 to N270.89 billion in 2024
- Rising finance charges further hurt the company's bottom line, going up 54% to N301.28 billion in 2024
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
For the fiscal year that concluded on December 31, 2024, Dangote Sugar Refinery Plc reported a loss after tax of N192.6 billion, which is 161% higher than the N73.76 billion loss reported for the same time in 2023.
According to the company's audited financial results, which were submitted to the Nigerian Exchange Limited on Tuesday, its loss before taxes increased dramatically to N270.89 billion in 2024 from N108.92 billion the year before.
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The company's cost of sales increased by 78% to N634.58 billion from N355.15 billion in 2023, reducing profitability even though revenue increased by 51% to N665.69 billion from N441.45 billion. As a result, gross profit fell 64% from N86.3 billion in 2023 to N31.11 billion.
The company's bottom line was further impacted by rising finance charges, which increased by 54% to N301.28 billion in 2024 from N201.66 billion the year before.
In contrast to its 2023 comprehensive loss of N73.76 billion, the company's revaluation surplus of N432.17 billion increased its overall comprehensive income to N132.98 billion.
Dangote Sugar's total assets on the financial sheet increased by 75% from N600.79 billion in 2023 to N1.05 trillion in 2024, primarily due to a spike in property, plant, and equipment, which increased from N167.08 billion to N616.64 billion.
Due mostly to a large growth in financial liabilities, its total liabilities rose by 61% from N521.54 billion to N838.61 billion in 2024.
Under its N150 billion debt program, Dangote Sugar Refinery Plc has started an offering to raise N50 billion from debt capital market investors by issuing Series 6 and Series 7 commercial papers.
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Legit.ng earlier reported that the group committed over $700 million to increase its sugar production activities and end sugar importation in Nigeria.
This sum was invested into land acquisitions, the purchase of machinery and infrastructure, and securing manpower for its local sugar production activities.
Aliko Dangote, President of the Dangote Group, disclosed this while speaking at the Dangote Special Day at the 14th Gateway International Trade Fair in Abeokuta, Ogun state.
He stated that the company is investing heavily in the Backward Integration programme to create more jobs for Nigerians and support the government’s drive to improve food security, the SUN reports.
Dangote Sugar targets increased production
Legit.ng reported that Dangote Sugar Plc has stated that it plans to achieve an annual production milestone of 1.5 million metric tons of sugar sourced from locally cultivated sugarcane.
Ravindra Singhvi, the Chief Executive Officer of Dangote Sugar, revealed this ambition while elaborating on the company's 2023 full-year performance during a presentation to the Nigerian Exchange over the weekend.
This follows the Federal Government's Backward Integration Policy regarding sugar, poised to change Nigeria's sugar production landscape substantially.
