…2024FY pre-tax loss settled at NGN270.89 billion (vs pre-tax loss of NGN108.92 billion in 2023FY).
…With a tax credit of NGN78.28 billion, loss after tax came in at NGN192.62 billion (vs loss after tax of NGN73.76 billion in 2023FY).
TUE MARCH 04 2025-theGBJournal| Dangote Sugar Refinery Plc (DANGSUGAR) gross margin (-14.88 ppts) shrank to 4.7%, following the 78.7% y/y growth in cost of sales in 2024FY.
The sugar company’s 2024FY audited financials published today also reflects huge cost pressures, stemming mainly from higher cost of raw materials (+84.5 % y/y | 86.0% of COGS) due to the highly inflationary environment and currency depreciation.
Its EBITDA (-14.92 ppts) and EBIT (-14.56 ppts) margins deteriorated to 3.8% and 1.9%, respectively, further pressured by a 41.8% y/y growth in operating expenses.
Net finance costs surged by 53.7% y/y, following a 49.4% y/y rise in finance cost and a 27.9% y/y decline in finance income.
The surge in finance costs is largely attributed to the increase in net exchange losses incurred on letters of credit to NGN208.90 billion (vs NGN172.20 billion in 2023FY).
Consequently, 2024FY pre-tax loss settled at NGN270.89 billion (vs pre-tax loss of NGN108.92 billion in 2023FY).
With a tax credit of NGN78.28 billion, loss after tax came in at NGN192.62 billion (vs loss after tax of NGN73.76 billion in 2023FY).
DANSUGAR reported a loss per share of NGN15.86 (vs loss per share of NGN6.07 in 2023FY). The loss for the year was triggered by mounting pressure from COGS (+78.7% y/y) and the elevated net finance costs (+53.7% y/y) stemming from exchange loss on letters of credit in the period.
Meanwhile, the company’s revenue rose by 50.8% y/y (Q4-24: +37.6% y/y), driven by broad based growth across its 50kg Sugar (+51.0% y/y | 96.7% of revenue), Retail sugar (+52.3% y/y | 2.6% of revenue) and Molasses (+81.9% y/y | 0.6% of revenue) business segments, as Freight income (-73.0% y/y | 0.1% of revenue) declined.
Across its geographical footprint, DANGSUGAR witnessed topline growth in its Lagos (+82.6% y/y | 56.1% contribution), North (+18.2% y/y | 32.4% contribution), West (+43.8% y/y | 8.3% contribution) and East (+32.7% y/y | 3.1% contribution) regions.
The revenue expansion in the period was primarily due to price increases in response to rising cost pressures.
Dangote Sugar Refinery PLC was established in 1999 and commenced its sugar business in 2000 as a division within the Dangote Group held through its holding company, Dangote Industries Limited (DIL).
The company was listed on the Nigerian Stock Exchange (now the Nigerian Exchange Group Plc) in March 2007 following an initial public offering of its shares in 2006.
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