*As cost of sales declines by 15.8%
WorldStage– Dangote Sugar Refinery Plc has released its third quarter (Q3) 2025 unaudited financials with a post-tax profit of NGN13.68 billion, a notable turnaround from the NGN40.35 billion post-tax loss recorded in Q3-24, thanks to effective cost optimization and improved operating efficiency.
DANGSUGAR reported a pre-tax profit of NGN13.38 billion in Q3-25, reversing a pre-tax loss of NGN64.16 billion in Q3-24.
Consequently, the company’s cumulative post-tax loss for 9M-25 narrowed significantly to NGN10.59 billionas against NGN184.36 billion in 9M-24).
The company reported an Earning per share (EPS) of NGN1.13 against loss per share of NGN3.33 in Q3-24), bringing 9M-25 loss per share of NGN0.87 from loss per share of NGN15.18 in 9M-24).
The performance was driven by a 15.8% y/y decline in cost of sales, which sustained the company’s operational recovery momentum observed since Q2-25.
Moreover, DANGSUGAR recorded modest revenue growth of +3.8% y/y in Q2-25 up to +29.3% y/y in 9M-25, driven by disciplined pricing and moderate volume gains in the 50kg Sugar segment (+4.6% y/y | 97.9% of revenue).
However, performance across other segments weakened—Retail Sugar (-16.9% y/y | 1.9% of revenue), Molasses (-46.9% y/y | 0.2% of revenue), and Freight income (-88.7% y/y | 0.0% of revenue).
By region, growth was concentrated in Lagos (+25.9% y/y | 57.6% of revenue), while the Northern (-14.1% y/y | 33.3% of revenue), Western (-20.3% y/y | 6.7% of revenue), and Eastern (-28.8% y/y | 2.5% of revenue) markets underperformed.
Importantly, DANGSUGAR’s cost of sales declined markedly by 15.8% y/y in Q3-25 (9M-25: +15.4% y/y), driving continued margin recovery. Consequently, gross and EBITDA margins expanded by 18.69ppts and 25.42ppts y/y to 19.6% and 25.7%, respectively, underscoring enhanced cost efficiency and stronger operating leverage.
Building on the improved operating performance, net finance costs declined significantly by 52.5% y/y in Q3-25, supported by a more stable FX environment that eliminated exposure to exchange losses (Q3-24: NGN39.82 billion FX loss).
However, the benefit was partly offset by a steep rise in accrued interest on bank loans (+473.3x y/y), which tempered overall finance gains.
