Dangote Sugar’s Sweet Deal: N63 Billion from Coca-Cola Bottler Fuels Strong Comeback
Dangote Sugar Refinery Plc had a fantastic second quarter in 2025, largely thanks to one very important customer: the Nigerian Bottling Company (NBC), which is the company responsible for bottling Coca-Cola products in Nigeria.
NBC alone accounted for a huge N63 billion in sugar sales for Dangote Sugar in that quarter, making up nearly a third (31.74%) of the company’s total revenue for the period. These sales were primarily from the Lagos region, which is Dangote Sugar’s biggest market in Nigeria.
A Strong Financial Picture
Overall, Dangote Sugar reported a robust N216.2 billion in revenue for Q2 2025, a significant 25.09% increase compared to N172.8 billion in the same period last year.
The company earns its money by selling unfortified sugar to big players in the food and beverage industry (like Coca-Cola’s bottler) and pharmaceutical companies. They also sell Vitamin A-fortified sugar in smaller packs (250g, 500g, and 1kg) to individuals and small businesses through their wide retail network.
Sales to large distributors remained a major powerhouse, contributing a huge 65% to Dangote Sugar’s total earnings. This strong performance helped push the company’s total revenue for the first half of the year (H1) to an impressive N430.2 billion, a jump of 45.53% compared to the first half of 2024.
First Half Revenue Highlights:
Bulk Sugar Sales: Most of the half-year revenue came from the sale of their large 50kg sugar bags, bringing in N416.8 billion (up 46.68%).
Retail Growth: Sales of smaller retail packs also grew steadily, reaching N10 billion from N8.6 billion in H1 2024.
Other Income: They also earned N3.2 billion from selling molasses (a byproduct of sugar refining) and N39.8 million from freight services.
Market Performance Across Nigeria:
Lagos: Remains the strongest market, with sales increasing from N180.1 billion to N228.1 billion.
Northern Region: Showed the fastest growth, almost doubling its revenue to N163.4 billion (a 98.36% jump!).
Other Western States: Sales rose to N28.5 billion from N24 billion.
Eastern Region: Contributed N10 billion, up from N9 billion.
Smart Cost Cutting Leads to Profit:
Beyond just strong sales, Dangote Sugar also did a great job managing its costs. They significantly reduced their finance expenses (costs related to borrowing money and currency fluctuations), which had been a big drain on their earnings in the past.
In Q2, finance costs dropped sharply to N35.1 billion, a massive improvement from N111.6 billion in the same period last year. This huge reduction was key to bringing the company back into the green. For the entire first half of the year, total finance costs fell dramatically to N64.9 billion, compared to N234.1 billion in H1 2024.
Most of these savings came from a significant reduction in losses due to currency exchange rate differences, which dropped from N193.6 billion to N160.2 billion. Lower costs from letters of credit also helped, falling from N32.1 billion to N21.9 billion.
After struggling with losses for several quarters, Dangote Sugar has finally turned things around, reporting a pre-tax profit of N523.8 million in the second quarter. This marks a strong recovery and signals healthier financial times ahead for the sugar giant.
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