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DANGOTE SUGAR REFINERY PLC – Q1 2025 Financial Performance Summary
🗓 For the Quarter Ended March 31, 2025
Dangote Sugar Refinery Plc recorded a loss of ₦23.6 billion in Q1 2025 despite stable revenue, dragged down by massive finance costs and persistent administrative expenses, signaling that cost management and debt exposure remain key challenges.
📊 KEY FINANCIAL HIGHLIGHTS (GROUP FIGURES)
Item Q1 2025 Q1 2024 % Change
Revenue ₦213.93 billion ₦122.73 billion ▲ 74%
Cost of Sales ₦204.67 billion ₦113.98 billion ▲ 80%
Gross Profit ₦9.26 billion ₦8.75 billion ▲ 6%
Operating Profit ₦2.75 billion ₦5.30 billion ▼ 48%
Finance Cost ₦29.86 billion ₦122.52 billion ▼ 76%
Loss Before Tax ₦22.63 billion ₦106.86 billion ▼ 79%
Net Loss ₦23.65 billion ₦68.99 billion ▼ 66%
EPS (Naira) (₦1.95) (₦5.68) ▼ 66%
💡 ANALYSIS AND INSIGHTS
✅ Positives
- Revenue Surge: Topline grew 74%, reflecting stronger market demand or price increases.
- Gross Margin: Maintained at ~4.3% despite cost pressures, but still weak for a manufacturing firm.
- Finance Cost Reduction: Down significantly from ₦122.5B in Q1 2024 to ₦29.86B—likely due to FX revaluation gains or lower borrowings cost in the quarter.
❌ Negatives
- Administrative Expenses rose from ₦3.5B to ₦6.47B (▲85%)—a major drag on operating performance.
- Finance Costs remain very high (₦29.86B), overshadowing operating profits entirely.
- Net Loss continues to weigh on retained earnings, now at ₦(149.3B).
🏢 FINANCIAL POSITION (GROUP)
Item 31 Mar 2025 31 Dec 2024 31 Mar 2024
Total Assets ₦1.05 trillion ₦1.05 trillion ₦617.85 billion
Total Equity ₦188.6 billion ₦212.2 billion ₦10.25 billion
Total Liabilities ₦856.8 billion ₦838.6 billion ₦607.6 billion
Cash and Equivalents ₦98.99 billion ₦108.17 billion ₦138.20 billion
Trade Payables ₦111.35 billion ₦98.68 billion ₦97.98 billion
Borrowings (Short + Long Term) ₦727.29 billion ₦717.5 billion ₦481.73 billion
⚠️ Key Observations
- Leverage is high, with borrowings consuming over 69% of total assets.
- Retained losses have ballooned to ₦149.35 billion, eroding shareholder value.
- Cash position declined to ₦99 billion, likely due to debt service and operating outflows.
📌 Conclusion & Outlook
Despite robust revenue growth, Dangote Sugar continues to battle massive cost burdens, especially finance and administrative expenses. Although Q1 2025 showed improvement in net loss vs. Q1 2024, the bottom line remains in deep negative territory.
🔮 Investors and stakeholders will watch closely for:
- Further debt restructuring or refinancing
- Cost optimization strategies
- FX volatility impact on future quarters
- Improved operating efficiencies
Verdict: Dangote Sugar's Q1 2025 result is a marginal recovery in a heavily pressured financial landscape. The road to profitability will require sustained focus on cost control, debt reduction, and operational excellence.
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