Dangote Sugar Refinery Plc has secured shareholder authorization to raise up to ₦500 billion through a Rights Issue of ordinary shares, following a vote at the company's 20th Annual General Meeting held in Lagos. The capital raise, disclosed in a statement signed by Company Secretary Temitope Hassan, will be executed on terms and at a timing determined by the Board, pending regulatory approval. The company noted that the Rights Issue may be underwritten, and any shares not taken up by existing shareholders could be offered to other interested investors, subject to final Board and regulatory authorization.
The authorization resolution empowers the Directors to proceed with the issuance "on such terms and conditions and at such time as the Directors may deem fit," according to the company statement. Dangote Sugar said the initiative is aimed squarely at strengthening its financial capacity to support long-term growth objectives, positioning the balance sheet for expanded operations and investment opportunities ahead.
FY2025 Results Show Revenue Surge and Cost Discipline
The ₦500 billion capital raise arrives against a backdrop of markedly improved financial performance in fiscal year 2025. Total revenue surged by 24.56% to ₦829.2 billion, with demand for 50kg sugar—the company's core product category—accounting for ₦807 billion of that total. Retail sugar sales contributed ₦17.7 billion, while molasses and freight income streams added ₦4.02 billion and ₦66.4 million respectively, reflecting diversification beyond bulk refined sugar.
Cost of sales rose by 11.35% to ₦706.5 billion, with raw material costs comprising ₦573.3 billion of that figure. The gap between revenue and cost of sales produced a gross profit of ₦122.6 billion for the year. On a pre-tax basis, the company recorded a loss of ₦72.2 billion in 2025, a significant improvement from the ₦270.8 billion pre-tax loss posted in 2024. The narrowing of the loss position reflects both revenue growth and improving cost discipline as the company scales operations.
Analysts tracking the sugar sector note that the Rights Issue could give Dangote Sugar greater flexibility to secure longer-term raw material procurement contracts and potentially expand refining capacity, particularly given the volume-driven growth evident in 2025 figures. The company's push to reinforce its capital base comes as Nigeria's sugar market continues to expand, with domestic refining capacity a strategic asset for food security and import substitution policy.