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Aliko Dangote’s Sugar Business Records N72bn Loss After Spending 85% Of Revenue On Production

March 6, 2026
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Aliko Dangote's Sugar Business Records N72bn Loss After Spending 85% Of Revenue On Production

In 2025, Dangote Sugar Refinery Plc, founded by Aliko Dangote, Africa’s richest man, spent 85.21 percent of its revenue on the cost of production, compared to the 95.32 percent expended in 2024, according to Prime Business Africa’s (PBA) analysis.

The impact of the cost of production on the company’s topline dropped following an 11.34 percent increase in the former and a 24.56 percent growth in the latter.

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In Dangote Sugar’s annual report and financial statements for the year ended December 31, 2025, the producer said turnover increased from N665.68 billion in 2024 to N829.21 billion.

During the period under review, production cost increased to N706.58 billion last year, compared to the N634.58 billion recorded in 2024.

With revenue rising faster than cost of sales, Dangote Sugar’s gross profit grew by 294.18 percent year-on-year, from N31.10 billion to N122.62 billion.

However, the sugar producer suffered a 74.75 percent decline in other income, which dropped from N2.21 billion in 2024 to N558.69 million.

Also, the company expended N27.87 billion on administrative expenses in 2025, compared to the N18.92 billion incurred in the previous year, indicating a 47.33 percent increase, but selling and distribution expenses incurred N729.43 million last year, down by 11.24 percent from the N821.86 million posted in 2024.

Dangote Sugar also reported a N96.13 billion operating profit during the period under review, surpassing the N12.67 billion recorded in 2024, representing a 658.63 percent increase.

Additionally, the company’s finance income decreased by 40.54 percent year-on-year, from N7.61 billion to N4.52 billion, however, it offset the decline with a 41.79 percent drop in finance charges, which nosedived from N301.27 billion to N175.34 billion.

Consequently, net finance cost declined from N293.66 billion in 2024 to N170.82 billion in 2025, reflecting a 41.83 percent drop.

As a result, Dangote Sugar’s loss before tax decreased by 73.31 percent to N72.27 billion last year, compared to the N270.89 billion recorded in 2024.

Also, the sugar producer paid N8.16 billion as income tax in 2025, against the N78.27 billion tax expense reported the year before, indicating an 89.57 percent decline.

In response, the loss after tax dropped to N64.11 billion last year, dropping by 66.71 percent from the N192.61 billion posted in 2024.

For press releases, tip-offs, and corporate information, call 08149575257 (hotline), email: editor@primebusiness.africa and publisher@primebusiness.africa

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