Dangote Sugar Refinery, an integrated sugar business in Nigeria, has seen its loss widen to N184.4 billion in the nine months of 2024 driven by 176 percent growth in finance cost during the period reviewed, BusinessDay analysis shows.
The sugar business recorded an after-tax loss of N27.03 billion in the nine months of 2023.
Further analysis reveals that Dangote Sugar Refinery’s finance cost surged to N300.2 billion in the nine months of 2024 from N108.7 billion in the similar period of 2023.
On the contrary, the firm’s financial income dipped to N6.93 billion from N7.24 billion during the reviewed period.
Net finance cost totalled N293.2 billion in nine months of 2024 from N101.5 billion in the nine months of 2023.
Revenue grew to N484.4 billion from N309.7 billion during the reviewed period.
Total assets grew to N667.6 billion from N616.5 billion while total liabilities surged to N772.7 billion from N490.6 billion.
Net cash generated from operating activities stood at a negative of N267 billion from a positive N8.53 billion. Net cash used in investing activities stood at a negative of N21.1 billion from a negative of N5.78 billion.
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Net cash used in financing activities stood at a positive N204.2 billion from a negative N18.4 billion.
Earning per share deepened to a negative N15.18 per share from a negative N2.22 per share during the comparable periods.
From May to August 2024, Dangote Sugar Refinery’s stock plummeted by 18.67 percent from N45.00 to N36.60, on the back of disruptions in the supply chain and volatile sugar prices, which have adversely affected the company’s financial performance.
Dangote Sugar Refinery Plc (DSR) has commenced the offering of its series 1 Commercial Paper (CP) of up to N50 billion. The offer which opened on Thursday, February 22 is scheduled to close Tuesday, February 27, 2024.
The series 1 Commercial Paper (266 days tenor) offered at a discount rate of 15.9188 percent and implied yield of 18.001 percent will mature on November 20, 2024.
The Series 1 CP is under the Dangote Sugar Refinery Plc N150 billion Commercial Paper Issuance Programme. The CPs issued under the Programme will be repaid from the cash flows of DSR. The Issuer has been assigned a rating of “Baa3.ng” from Moody’s.
Dangote Sugar Refinery Plc (DSR) is Sub-Saharan Africa’s largest sugar refinery, with a combined installed refining capacity of 1.44 million metric tonnes per annum and a market share of about 55 percent in the retail space.
DSR is on track to becoming a leading global integrated sugar producer with its backward integration plan – target 0.7MMT refined sugar production, expansion of out-growers scheme and strategic seeking to expand existing warehouses and fleet of over 800 haulage trucks to cover target markets in Nigeria and West Africa.
The firm has 47,364 hectares of sugar plantation and aims to produce 1.5 million metric tonnes of refined sugar annually from its sugarcane in the medium term.
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