September 3, 2025/CSL Research

Dangote Sugar Refinery Plc reported strong topline growth in its H1 2025 earnings, with Revenue rising by 45.5% year-on-year (y/y) to ₦430.21 billion, up from ₦295.62 billion in H1 2024. The growth was driven primarily by price increases across product lines, alongside a modest improvement in sales volumes. Segment performance was as follows:

• Sale of Sugar – 50kg: ₦416.85 billion, compared to ₦284.19 billion in H1 2024.
• Sale of Sugar – Retail: ₦10.03 billion, up 16.6% y/y from ₦8.60 billion in H1 2024.
• Sale of Molasses: ₦3.29 billion, up 28.4% y/y from ₦2.56 billion in H1 2024.
• Freight Income: ₦40 million, down 85.1% y/y from ₦268 million in H1 2024.

Dangsugar’s Operating Profit surged by 268.9% y/y to ₦38.10 billion (H1 2024: ₦10.33 billion), supported mainly by the topline growth and significant cost efficiency while Loss After Tax reduced to ₦24.27 billion, compared to a ₦144.01 billion in H1 2024.

Dangote Sugar (Dangsugar) is projected to deliver FY 2025 Revenue of ₦952.60 billion, representing a 43.1% y/y increase from ₦665.69 billion in FY 2024. This Cost pressures are anticipated to remain contained, supporting a sharp improvement in profitability. We forecast Gross Profit to reach ₦115.38 billion from ₦31.11 billion in FY 2024. Also, Operating Profit for Dangsugar is projected to reach ₦85.35 billion (FY 2024: ₦12.67 billion), while Loss Before Tax is forecast to reduce to ₦28.25 billion, down from a loss position of ₦270.89 billion in FY 2024.

At a current EV/EBITDA of 23.68x, Dangsugar trades at a premium to the MEA peer median of 18.65x. We maintain a HOLD rating, with a revised target price of ₦62.80/share (previously: ₦46.88/share).

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

​​​DANGSUGAR H1 2025 Company Update.pdf​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

​​​​​​​