October 31, 2025/Cordros Report
Dangote Sugar Refinery Plc (DANGSUGAR) released their Q3-25 unaudited financials on Thursday (30 October), reporting an EPS of NGN1.13 (vs loss per share of NGN3.33 in Q3-24), bringing 9M-25 loss per share of NGN0.87 (vs 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.
DANGSUGAR recorded modest revenue growth of +3.8% y/y in Q2-25 (9M-25: +29.3% y/y), 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. Consequently, 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.
Ultimately, DANGSUGAR’s effective cost optimization and improved operating efficiency translated into a post-tax profit of NGN13.68 billion in Q3-25, a notable turnaround from the NGN40.35 billion post-tax loss recorded in Q3-24. Consequently, the company’s cumulative post-tax loss for 9M-25 narrowed significantly to NGN10.59 billion (vs NGN184.36 billion in 9M-24), highlighting sustained operational recovery and strengthening earnings momentum.
Comment: DANGSUGAR’s commitment to a more sustainable cost structure has been instrumental in sustaining operational recovery and margin expansion through 9M-25 despite modest revenue growth. Looking ahead, we believe the company is well positioned to return to profitability in 2025FY, supported by gradual volume recovery, festive-driven demand, and a more stable FX environment.
