March 5, 2025/CSL Research

Financial Highlights:

• Revenue +50.8% y/y to ₦665.69B
• Cost of Sales +78.7% y/y to ₦634.58B
• OPEX +39.1% y/y to ₦20.65B
• EBITDA -69.5% y/y to ₦25.27B
• Operating Profit -82.6% y/y to ₦12.67B
• Loss before Tax +148.7% y/y to ₦270.89B

Dangote Sugar Refinery Plc. (DSR) recently released its FY 2024 results, reporting a 50.8% y/y Revenue growth to ₦665.69 billion from ₦441.45 billion in FY 2023. On a quarterly basis, Revenue declined by 4.0% q/q, down to ₦181.26 billion in Q4 2024 compared to ₦188.80 billion in Q3 2024. We posit that the full year Revenue growth was driven mainly by price increases. Revenue numbers for the reporting segments are as detailed below:

 Sale of Sugar – 50kg: ₦643.74bn, up 51.0% y/y from ₦426.45bn in FY 2023. Contributed 96.70% of overall Revenue compared to 96.60% in FY 2023.

 Sale of Sugar – Retail: ₦17.45bn, up 52.3% y/y from ₦11.46bn in FY 2023.

Added 2.62% to total Revenue in FY 2024, up marginally from 2.60% in FY
2023.

 Sale of Molasses: ₦4.16bn, up 81.9% y/y from ₦2.29bn in FY 2023. Contributed 0.63% to overall Revenue compared to 0.52% in 2023.

 Freight Income: ₦339m, down 73.0% y/y from ₦1.26bn in FY 2023. Contributed 0.05% to total Revenue, down from 0.28% in FY 2023.

Across regions, revenue from Lagos experienced significant growth, increasing by 82.6% year-on-year to ₦373.53 billion in FY 2024, up from ₦204.54 billion in FY 2023. The region’s contribution to overall revenue also rose, accounting for 56.11% in FY 2024 compared to 46.33% in the previous year. Meanwhile, asset turnover for DSR declined to 0.63x in FY 2024 from 0.73x in FY 2023. This decline was primarily driven by an asset revaluation exercise conducted during the year, which led to a substantial increase in asset value relative to revenue growth.

Stock Rating: HOLD, Target Price: ₦41.07/s

To read full report, click on the link below​​

​​​​​DANGSUGAR FY 2024 Quick Take.pdf​​​​​​​

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