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Dangote Sugar Plc is highly exposed to foreign exchange (FX) revaluation headwinds that is responsible for recurring operating losses which jeopardises dividend payment.
The largest producer of the sweetener in Africa’s most populous nation has not recovered from the sharp depreciation of the Naira. It has recorded three consecutive losses, but it has a positive retained earnings.
For the first nine months through September 2025, Dangote Sugar posted a loss after tax of N10.59 billion from a loss of N184.35 billion as at September 2024.
It is important to note that the consumer goods giant has pared foreign exchange losses, which means it will soon turn a profit.
Because Nigeria is still 90 percent dependent on imported raw sugar, Dangote Sugar is much more susceptible to FX volatility as it was hard hit by the currency devaluation.
That’s on top of the bad weather conditions in Brazil and India, the two largest producers globally.
Revenue was up 29.27 percent to N626.23 billion as at September 2024, from N484.42 billion as at September 2024. The topline impressive performance was buoyed by higher sales volume and price increments on products.
As a result of the prevailing inflationary environment and the impact of the Naira depreciation, Dangote Sugar spent N0.85 to produce every N1 unit of product.
However, cost of sales which increased by 15.40 percent is lower than the 18.02 percent September inflation figure.
Despite the challenging environment, operating profit surged by 894.11 percent to N81.12 billion in the period under review from N8.16 billion the previous year.
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