Dangote Sugar Refinery (‘the Company’) sustained its topline growth in Q2 2023, achieving a 10% revenue growth on a year-on-year basis to N100.56billion from N91.01bilion in Q2 2022. This revenue growth aligns seamlessly with our revenue projection for the Company, underscoring the benefit of price increases across the Company’s products.

However, the FX losses incurred due to the steep devaluation of Naira in Q2 2023, marred the Company’s earnings. The Company reported a significant FX loss of N83.10billion in Q2 2023, from N4.92billion reported in Q2 2022. This plummeted the Company into a loss after tax of N40.80billion in Q2 2023, from a net profit of N11.37billion in Q2 2022.


We maintain our revenue projection of 11% for FY 2023, propelled by sustained pricing strategy, that strategically compensates for potential moderation in volume growth, and high global raw sugar prices.

In the coming quarters, we expect the Company to return to profitability. However, the net income for FY 2023 is expected to decline by 82% due to the incurred FX losses in the fiscal year. Consequently, our projection for the EPS stands at N0.81 from N4.51in 2022.

Notably, on the 31st of July 2023, Dangote Sugar, Nascon, and Dangote Rice Limited notified the general public of their proposed mergers to “Dangote Foods Plc”. They believe the action will consolidate and solidify the Group market position and ultimately reposition the Group to harness future opportunities in the Food industry. The merger between its subsidiaries will proceed via a scheme of consideration, eleven (11) ordinary shares in Dangote Sugar will be given for every twelve (12) Nascon shares held.

Please follow the link “Dangote Sugar Refinery Q2 2023 – Proposed Merger Propels Valuation, Yet Caution Required” to view the whole report.

Thank you.

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