Dangote Sugar Refinery Plc has posted a strong performance in the second quarter of 2025, with revenue reaching ₦216.2 billion, up 25.09% from ₦172.8 billion in the same period last year. The company’s robust sales performance, particularly to large distributors and key clients like the Nigerian Bottling Company (NBC), helped it return to profitability after several quarters of losses.
Major Boost from Strategic Clients
A standout contributor to Q2 earnings was NBC, which alone accounted for ₦63 billion, or 31.74% of total quarterly revenue. This volume of sales was logged under the Lagos region, the company’s strongest-performing market. Dangote Sugar supplies unfortified sugar to major food and beverage firms like NBC, while Vitamin A-fortified sugar is distributed through small wholesalers and micro-enterprises into Nigeria’s retail market.
Meanwhile, bulk sales to large-scale distributors remained a cornerstone of Dangote Sugar’s business, contributing 65% of the group’s total Q2 revenue.
Retail and Regional Performance
Retail sales also showed modest growth, as consumers continued to buy the company’s smaller packages—250g, 500g, and 1kg sizes—which are sold through conventional retail channels. For the first half of 2025, retail revenue rose to ₦10 billion, up from ₦8.6 billion a year earlier.
In terms of regional performance:
- Lagos led with ₦228.1 billion in H1 sales, up from ₦180.1 billion.
- The Northern region saw the sharpest increase, nearly doubling revenue to ₦163.4 billion, a 98.36% jump.
- Western states (outside Lagos) contributed ₦28.5 billion, up from ₦24 billion.
- The Eastern region recorded ₦10 billion in sales, slightly higher than last year’s ₦9 billion.
First Half Financial Snapshot
For the first half of 2025, Dangote Sugar recorded total revenue of ₦430.2 billion, reflecting a 45.53% growth over H1 2024. The bulk of this came from sales of 50kg sugar bags, which brought in ₦416.8 billion, representing a 46.68% year-on-year increase. The company also earned:
- ₦3.2 billion from molasses sales
- ₦39.8 million in freight income
Cost Management Pays Off
Perhaps the most critical turnaround story for Dangote Sugar is its sharp reduction in finance costs, a factor that had previously dragged the company into losses. In Q2 2025, finance expenses dropped to ₦35.1 billion, compared to ₦111.6 billion in the same quarter last year.
Total finance costs for H1 2025 were trimmed to ₦64.9 billion, significantly lower than ₦234.1 billion in H1 2024. Key areas of savings included:
- Exchange losses, which fell from ₦193.6 billion to ₦160.2 billion
- Letters of credit expenses, down from ₦32.1 billion to ₦21.9 billion
After incorporating finance income of ₦457.4 million, net finance costs for Q2 dropped to ₦34.6 billion, a steep decline from ₦109.3 billion in Q2 2024.
Return to Profit
The combination of strong revenue growth and tighter financial discipline enabled Dangote Sugar to post a pre-tax profit of ₦523.8 million in Q2 2025—marking a decisive turnaround from previous quarters marred by heavy losses.
As the company continues to lean on its robust distribution channels, key industrial partnerships, and improved cost controls, it appears to be regaining its footing in an increasingly competitive Nigerian sugar market.