|
Listen now
|
In its unaudited Q1’24 result, Dangote Sugar Refinery Plc reported a net loss of N68.9 billion following a surge in finance costs (+1420.4%) during the quarter.
The company recorded a 20.1% YoY revenue growth, driven by higher sales across its product lines. Revenue from the sale of 50 kg Sugar (+18.5% YoY), retail Sugar (84.2% YoY), and molasses (+119.7% YoY) accounted for 95.3%, 3.4%, and 1.2% of total revenue, respectively.
Expectedly, the Cost of Sales increased (+49.0% YoY) following the impact of inflationary pressures on raw materials, direct labour, and overhead costs. Similarly, the operating expenses or OPEX grew by 24.9% YoY, largely driven by higher administrative expenses, which offset the moderation in selling and distribution expenses. Consequently, gross and operating profit margins declined to 7.1% and 4.2% (vs Q1’23: 25.2% and 22.4%), respectively.
Elsewhere, net finance costs surged, following a lower finance income and higher finance cost on letters of credit.
In addition, owing to the foreign exchange volatility in the period, the company recorded a significant foreign exchange loss of N102.9 billion (vs N4.4 billion in Q1’23). Consequently, the company recorded a negative profit before tax (PBT) of N106.9 billion (vs N18.5 billion in Q1’23)
Meanwhile, DANGSUGAR recorded a tax credit of N37.9 billion, which eased the negative PBT and brought the net loss to N68.9 billion.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!