Nigeria Naira Devaluation Blamed as Dangote Sugar Faces ₦172 Billion Forex Losses in 2023

Dangote Sugar Refinery Plc faces financial headwinds as it reports a substantial loss before tax amounting to N108.92 billion in its 2023 annual report. The staggering foreign exchange losses of N172.198 billion, attributed to the devaluation of the naira, lead to a 53% depletion of shareholders' funds from N171.2 billion to N79.2 billion.

Despite a 9.47% increase in revenue to N441.453 billion, the company experiences a decline in gross profit by 6.15% to N86.304 billion. Operating profit also takes a hit, dropping by 11.8% to N76.68 billion.

The (loss) after tax amounts to -N73.760 billion, reflecting a -234.74% YoY change. Dangote Sugar emphasizes margin and cost management initiatives to counter forex volatility and cost inflation.

The company remains resilient, emphasizing positive returns from Numan operations, plans for accelerated backward integration efforts, and specific actions to enhance operational efficiency and profitability.

These measures are crucial to restoring investor confidence amid a marginal 5.2% YtD share price decline and gaining 255% in 2023."