How Aliko Dangote's Sugar Empire Suffered $36 Million Loss
Home News  How Aliko Dangote’s Sugar Empire Suffered $36 Million Loss
News - July 31, 2023

 How Aliko Dangote’s Sugar Empire Suffered $36 Million Loss

Aliko Dangote’s Sugar Empire reportedly faced huge foreign exchange losses amounting to over $100 million in the first half of 2023. The whooping $107.3 million losses suffered by the leading integrated sugar business were attributed to the devaluation of the Naira. 

Reports say the devaluation impacted the Nigerian billionaire company’s earnings capacity and necessitated the revaluation of its foreign currency obligations.

The earnings of Dangote Sugar Plc also felt pressure as it recorded a significant loss of $36.17 million during the first six months of 2023. This contrasts sharply with the $26.2 million profit posted in the first half of 2022 when foreign exchange losses were only $2.44 million.

Despite recording an increase in sales and revenue for the first half of 2023, with revenue rising from $240.6 million to 263.1 million, Dangote Sugar’s profit was heavily impacted by the foreign exchange losses.

Remarkably, The company’s total assets grew during the same period, increasing from $638.8 million at the beginning of the year to $734.32 million. But its retained earnings experienced a decline, falling from N158.84 billion to N112.64 billion.

What you need to know

Aliko Dangote, who holds a 72.7 per cent stake in the company, Dangote Sugar announced plans for a proposed merger with Nascon Allied Industries Plc and Dangote Rice Limited, both of which operate under the umbrella of the Dangote Group. This comes as a strategic move aimed at unlocking value for its shareholders.

The proposed merger seeks to create a formidable food conglomerate boasting a diverse product portfolio, including sugar, rice, salt, vegetable oil, tomato paste, seasoning, and savoury products.

It will also signal a significant shift in the Nigerian foods and consumer goods industry. 

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