Dangote Sugar Refinery Plc recorded a profit before tax of N78.17 billion for the nine months ended 30 September 2026, compared with a loss before tax of N8.72 billion in the corresponding period of 2025.

The return to pre-tax profitability came despite a 9.1% decline in revenue, with gross profit increasing as cost of sales fell sharply than sales.

The company’s unaudited financial statements also reported a substantial reduction in borrowings following its 2026 rights issue and debt repayments.

Key Highlights

  • Revenue: N569.41 billion (Down 9.07% YoY from N626.24 billion).
  • Gross profit: N126.47 billion (Up 40.42% YoY from N90.06 billion).
  • Pre-tax profit: N78.17 billion, compared with a loss before tax of N8.72 billion in the corresponding period of 2025.
  • Profit after tax: N74.25 billion, compared with a loss after tax of N10.59 billion in the corresponding period of 2025.
  • Earnings per share: N3.67, compared with a loss per share of N0.87 in the corresponding period of 2025.

Driving the numbers

Dangote Sugar’s revenue declined by 9.07% to N569.41 billion in the first nine months of 2026.

The bulk of sales came from its 50kg sugar product, which generated N555.10 billion. Retail sugar sales contributed N12.04 billion, while molasses generated N2.11 billion, and freight income contributed N158.08 million.

  • The regional breakdown shows that Lagos remained the largest market, contributing N309.55 billion, or approximately 54.4% of total revenue.
  • Northern Nigeria generated N212.18 billion, representing about 37.3% of revenue.
  • Western Nigeria contributed N33.45 billion, while the eastern region generated N14.23 billion. The figures show that the company’s sales remained concentrated in Lagos and the northern market.
  • Although revenue declined, gross profit increased by 40.42% to N126.47 billion. This was supported by a reduction in cost of sales to N442.94 billion from N536.18 billion in the corresponding period of 2025. The cost of sales therefore declined faster than revenue, allowing the group to retain a larger share of its sales as gross profit.

Other income also increased to N23.78 billion from N12.74 billion. This provided additional support to earnings, although the improvement in gross profit was the more significant movement in the reported income statement.

Financing expenses remained a key consideration. Finance costs included N11.76 billion on letters of credit, N24.80 billion in accrued interest on bank loans, N14.60 billion in commercial paper interest, N5.44 billion in overdraft interest and N330.94 million in lease interest. Finance income from bank deposits amounted to N5.21 billion.

  • The balance sheet reflects a significant change in the group’s funding structure. Borrowings fell to N89.32 billion from N736.22 billion a year earlier.
  • The company’s gearing disclosure also showed a reduction in its gearing ratio to 13% from 371% in September 2025.

The statements record a rights issue that raised approximately N485.88 billion, involving the issuance of about 8.10 billion new ordinary shares at N60 each. The offer closed in June 2026 and was reported as oversubscribed.

  • However, cash and cash equivalents declined to N23.80 billion from N79.88 billion in September 2025.
  • The cash flow statement also records substantial repayments of borrowings and movements in commercial paper and letters of credit. These funding movements are relevant to the fall in cash, even as the company’s debt position improved.
  • Inventory increased to N180.46 billion from N130.50 billion a year earlier. The largest components included production supplies of N60.68 billion, raw materials of N47.99 billion and finished goods of N11.26 billion.
  • The group also reported raw materials in transit of N31.03 billion. These inventory balances represent a significant portion of current assets and will be important to monitor alongside sales and cash generation.

Overall, Dangote Sugar returned to profitability in the nine-month period, supported by stronger gross profit and higher other income. The reduction in borrowings and gearing represents a major change in its balance sheet position. However, the decline in revenue and cash balances, together with the sizeable inventory position, remain important considerations when assessing the durability of the recovery.

Balance Sheet

On the balance sheet, total external debt reduced to N89.32 billion as at 30 September 2026, down from N736.22 billion at 30 September 2025. The reported borrowing balance is presented as a single figure in the gearing disclosure.

Total assets also fell to N943.20 billion as at 30 September 2026, compared with N1.02 trillion at 30 September 2025, while cash balance recorded N23.80 billion as at 30 September 2026, down from N79.88 billion at 30 September 2025.

Market reaction

Dangote Sugar share price of N68.00 as at 30 September 2026.
This represents a 12.9% YtD growth from N60.20.