Dangote Sugar Refinery Plc plans to raise up to ₦500 billion through a Rights Issue, subject to regulatory approval. Shareholders approved the capital raise at the company's 20th Annual General Meeting in Lagos, authorising the board to issue ordinary shares on terms it deems suitable. The move aims to strengthen the company's capital base and support long-term growth objectives. The Rights Issue may be underwritten, and any shares not taken up by existing shareholders could be offered to other investors. Unallotted shares will be cancelled as permitted by law, and the share capital will be increased to accommodate the new issuance.
The company's 2025 audited results show revenue rose 24.56% to ₦829.2 billion, driven by ₦807 billion from 50kg sugar sales. Retail sugar contributed ₦17.7 billion, molasses ₦4.02 billion, and freight income ₦66.4 million. Cost of sales increased 11.35% to ₦706.5 billion, with raw materials accounting for ₦573.3 billion. Gross profit stood at ₦122.6 billion, while pre-tax loss narrowed to ₦72.2 billion from ₦270.8 billion in 2024. Regional sales distribution showed Lagos responsible for 55.82%, the North 35.35%, the West 6.45%, and the East 2.38%. The Rights Issue is among the largest in Nigeria's corporate history.
Dangote Sugar is seeking to raise ₦500 billion from shareholders while reporting a pre-tax loss of ₦72.2 billion in 2025, raising questions about the burden placed on existing investors to fund growth amid recent losses. The company's sales remain heavily concentrated in Lagos and the North, which together account for over 91% of regional sales, suggesting limited penetration in southern and eastern markets. Shareholders may reasonably ask why expansion capital is being sought without evidence of improved profitability or broader geographic performance. The scale of the Rights Issue, among the largest in Nigerian corporate history, underscores the financial pressure on a flagship firm still recovering from deep losses.
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