Event

Dangote Sugar Refinery (“the Group”) reported a stellar revenue growth, yet the bottom line persisted in a net loss position due to sustained cost pressures, and foreign exchange losses.

Revenue soared by 72% to N172.90 billion (Q2 2023: N100.56 billion), a performance that management attributed to strategic price adjustments implemented to counterbalance escalating input costs, and mitigate the impact of lower volume sales due to diminished purchasing power and constraints in financing letters of credits.

Outlook

Our outlook for the Group’s financial performance in FY 2024 remains subdued, as persistent macroeconomic headwinds which include FX illiquidity, elevated energy prices, and heightened inflationary pressures continue to undermine the expected revenue growth.

In light of the Q2 2024 financial performance, and our expectation for FY 2024, we have revised our fair value estimate downward to N35.00 (previously: N38.22).

Please follow the link “Dangote Sugar Refinery Q2 2024 – FX Loss Sustains Net Loss Position” to view the whole report.

 Thank you.