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Nigerian billionaire Aliko Dangote’s Dangote Sugar Refinery swung back to profit in the first nine months of the year, after a large rights issue helped it slash debt and cut financing costs.
The sugar producer posted profit after tax of N74.25 billion ($55.9 million) in the nine months to Sept. 30, compared with a loss of N10.59 billion a year earlier, Nairametrics reported on Friday. Pre-tax profit came to N78.17 billion, against a loss of N8.72 billion.
The turnaround came despite weaker sales. Revenue fell 9.1% to N569.41 billion ($428.8 million), from N626.24 billion a year earlier. But cost of sales dropped to N442.94 billion from N536.18 billion, lifting gross profit 40.4% to N126.47 billion.
Other income nearly doubled to N23.78 billion, from N12.74 billion. Earnings per share came to N3.67, compared with a loss of 87 kobo a share a year earlier.
A fresh injection of capital transformed the balance sheet. Dangote Sugar raised about N485.88 billion through a rights issue of roughly 8.1 billion new shares at N60 each, which closed in June. The company used the money to cut borrowings to N89.32 billion, from N736.22 billion.
That sharply reduced its gearing, a measure of debt relative to equity, to 13% from 371% in September 2025. Lower debt eased pressure on earnings, although interest costs remained significant during the period. The company paid N24.8 billion in accrued interest on bank loans, N14.6 billion on commercial paper and N11.76 billion on letters of credit. Finance income from bank deposits came to N5.21 billion.
Cash fell to N23.8 billion from N79.88 billion, and total assets declined to N943.2 billion from N1.02 trillion as the company paid down debt.
Investors have welcomed the recovery. Dangote Sugar shares traded at N68 at the end of September, up 12.9% this year from N60.20.
The return to profit adds to a strong run for Dangote’s listed businesses. Rising shares of his cement company have pushed his fortune to $55.4 billion, while his refinery has continued to expand across the continent, including a deal to supply fuel to Cameroon.
Dangote Sugar is one of Nigeria’s largest sugar producers and a key part of the Dangote Group’s food business. Its return to profit follows a loss-making period that had weighed heavily on its finances and its share price.
The latest results suggest the restructuring is working, with lower debt giving the company more room to improve margins and invest in its operations.
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