Dangote Sugar Generates Profit From Core Operations Than Peer Rivals

The producer of the sweetener Dangote Sugar Refinery Plc has generated more profit from core business and converted sales into operating profit than any consumer goods firms in Nigeria, thanks to strong cost controls.

Dangote Sugar’s operating profit otherwise known as earnings before interest, and taxation (EBIT) surged by 1,521 percent as at March 2026, as the company’s cost containment helped cushion or mitigate the effects of a slow growth in revenue.

Peer rivals such as Unilever recorded operating profit expansion of 38.88 percent; Nestle Nigeria, (+1.73 percent); Nigeria Breweries, (+2.46 percent); International Breweries, (+25.80 percent); Champions Breweries, (+51.37 percent); Nascon Allied Industries, (+20.32 percent), and BUA Foods, (+11.32 percent), according to MoneyCentral calculations.

Despite elevated production costs, power supply challenges, and imported inflation that hamstrung the manufacturing sector, Dangote Sugar cost of sales or input costs reduced by 29.13 percent as at March 2025. There were many costs initiatives put in place that included alternative power generation which helped reduce diesel costs.

Reverting to path of profitability signals dividend payment in 2026

The company has lifted investors’ optimism about dividend payment as it returned to the path of profitability.

Without the stability in the foreign exchange market, consumer goods firms will not have returned to profit.

For the first three months through March 2026, Dangote Refinery Sugar posted profit after tax (PAT) of N19.15 billion from a loss after tax of N23.64 percent the previous year.

Operating profit margin or EBIT margin rose to 24.37 percent as at March 2026, from 1.29 percent, which is the largest industry margin expansion.

Backward Integration: The Cornerstone of Dangote Sugar’s Strategy

The company’s backward integration programme—“Sugar for Nigeria”—remains the cornerstone of its strategy. When fully implemented, it will become the key driver of profitability and value creation.

According to the company, the programme will reduce import dependence, lower foreign exchange exposure, generate employment, strengthen its supply chain, and support local farmers through its grower scheme.

Dangote Sugar plans to produce 1.5 million metric tonnes of sugar annually from locally grown sugarcane. This requires cultivating approximately 45,000 hectares—2.7 million tonnes of cane in Numan and 3.35 million tonnes in Nasarawa.

“Delivering this ambitious plan demands significant investment over the next five years in land development and factory expansion,” said the company.