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Dangote Sugar Refinery Plc (DANGSUGAR) has released its audited financial results for the 2024 fiscal year, reporting a loss per share of NGN15.86, compared to a loss per share of NGN6.07 in the previous year.
The company’s loss for the year was driven by significant increases in cost of goods sold (COGS) and net finance costs. COGS rose by 78.7% year-over-year, primarily due to higher raw material costs resulting from inflation and currency depreciation.
Net finance costs surged by 53.7% year-over-year, mainly attributed to exchange losses on letters of credit.
Despite the challenges, DANGSUGAR’s revenue increased by 50.8% year-over-year, driven by growth across its sugar, retail sugar, and molasses business segments. The company witnessed topline growth in all its geographical regions, including Lagos, North, West, and East.
However, the revenue expansion was primarily due to price increases in response to rising cost pressures. Gross margin contracted to 4.7%, while EBITDA and EBIT margins deteriorated to 3.8% and 1.9%, respectively.
Cordros Securities analysts however, expect DANGSUGAR to deliver another resilient topline performance in 2025, with a potential return to profitability driven by softening inflation and currency pressures. The analysts are currently reviewing their estimates for the company.
