Dangote Sugar Posts N20.6bn Profit in Q1 2026 Turnaround
Sugar giant reverses N22.6bn loss as cost reduction and other income drive strong first-quarter turnaround
Dangote Sugar Refinery has staged a remarkable comeback in the first quarter of 2026, posting a pre-tax profit of N20.6 billion, a sharp and decisive reversal from the N22.6 billion loss recorded in the corresponding period of 2025, signaling a significant improvement in the company’s operational and financial performance.
The turnaround was largely underpinned by a dramatic reduction in the cost of sales, which fell to N144.6 billion from N204.6 billion in the same quarter last year, a decline of roughly N60 billion that significantly improved the company’s bottom line. In addition, other income of N9.4 billion from non-core business activities provided further support to the overall earnings, helping to offset pressure from a weaker revenue performance.
Revenue for the quarter, however, declined by 12.22 percent to N187.7 billion, down from N213.9 billion recorded in Q1 2025, reflecting softer sales volumes or pricing adjustments during the period. Despite this top-line contraction, the company’s ability to aggressively manage production costs proved decisive in delivering a profitable quarter.
Profit after tax rose to N19.1 billion, compared to a loss of N23.6 billion in the prior year, while earnings per share improved markedly to N1.58 from a negative N1.95, a development likely to reassure investors and shareholders who endured a difficult 2025.
The company’s flagship 50kg sugar product continued to dominate its revenue mix, accounting for 97 percent of total sales, underscoring its central role in Dangote Sugar’s commercial strategy. On a regional basis, Lagos remained the strongest market, contributing N101 billion in sales, while the North recorded N70.5 billion, reflecting the company’s broad national distribution footprint.
The results are seen as a positive indication that Dangote Sugar is regaining financial stability and operational efficiency, even as businesses across Nigeria continue to navigate a challenging macroeconomic environment marked by inflation, currency pressures, and rising input costs.
Analysts and market watchers will likely keep a close eye on subsequent quarters to determine whether the company can sustain this momentum and build on its first-quarter recovery throughout the rest of 2026.
