₦airaland Forum

Dangote Sugar incurs N172 billion in forex losses, ends 2023 with N108.9 billion loss.

Dangote Sugar Refinery Plc has reported a loss before tax of N108.92 billion compared to a pre-tax profit of N82.3 billion a year earlier.

The company attributes these losses primarily to the substantial devaluation of the naira which has mostly eroded the operating profits of most manufacturing companies in the country.

According to the notes accompanying the company’s recently released 2023 annual report and financial statements, Dangote Sugar incurred foreign exchange losses totaling N172.198 billion.

This wiped out its operating profit of N76.68 billion.

The losses resulted in a 53% depletion of shareholders’ funds from N171.2 billion to N79.2 billion.

Key highlights

Revenue: N441.453 billion from N403.246 billion in 2022, +9.47% YoY.

Gross profit: N86.304 billion from N91.963 billion in 2022, -6.15% YoY.

Operating profit: N76.68 billion from N82.41 billion in 2022, -11.8% YoY.

(Loss)/Profit after tax: -N73.760 billion from N54.742 billion in 2022, -234.74% YoY.

(Loss)/EPS: -N6.07k from N4.51k in 2022, -234.59% YoY

Insights: The company further communicated that it has taken robust margin management and cost management initiatives to address the significant forex volatility and cost inflation.

It has also highlighted the positive returns from its Numan operations, its intention to accelerate backward integration efforts, and the review of other specific actions aimed at enhancing overall operational efficiency and profitability.

These are very commendable and needed to restore the deteriorating investor confidence as reflected in the share price marginal 5.2% YtD. In 2023, the share price gained 255%

Source: https://nairametrics.com/2024/03/03/dangote-sugar-incurs-n172-billion-in-forex-losses-ends-2023-with-n108-9-billion-loss/

https://dailytrust.com/dangote-sugar-ends-2023-with-n108-9bn-loss/

He'll recoup it from the AfDB loan.

Tinubu will share the money amongst the 40 thieves

The Hawk Dangote or any of its subsidiary deserves no pity. Hes gonna get his money Back soon

All the news about companies' performance we read on Nairaland is being deficit upon deficit. Does it mean no company makes money in Nigeria? If so, why are they still in business?

I am not understanding this whole forex loss concept.
If you deal with Naira, use local sugarcane, pay in Naira, and sell in Naira, how did such massive forex loss come about? Equipments?
Is it tied to imported parts?

RepoMan007:
I am not understanding this whole forex loss concept.
If you deal with Naira, use local sugarcane, pay in Naira, and sell in Naira, how did such massive forex loss come about? Equipments?
Is it tied to imported parts?

Dangote imports crude sugar drom brazil and refines it in Nigeria

majole:
Dangote imports crude sugar drom brazil and refines it in Nigeria

that means the loss is talking about what could have been made as profit and not necessarily what was lost to sluggish sales.

Bad time. Bad day devil drink water!
Body go dey pepper Dangote towards the board of the sugar refinery now!
He must be throwing mugs at them that se oloriburuku niyin ni?

RepoMan007:
that means the loss is talking about what could have been made as profit and not necessarily what was lost to sluggish sales.

Exactly!! alot of coys like Dangote were engaged in unethical anti progressive practices. Tell me if Dangote was so good to our economy , he has been running a government backed monopoly on sugar and cement for decades , why dont we have a sugar cain plantation? why dont we have billionaire farmers who made billions from selling sugar to dangote for decades? are you seeing it clearly?

People like Dangote are a danger to Nigeria and her economy! Dangote used his fulani cabal backed monopoly to excavacte and evicerate the Nigerian economy and people while enriching the countries they imported from while answering the name Local business mongul.

Where are the farmers who have been making billions from selling sugar from their plantation to dangote to make sugar for decades? where are the salt billionaires he made who ahve been selling salt raws to him to refine into trable salt for decades?

While i am angry with Tinubu, if only you know what the fulani cabal used dangote to do to the Nigerian economy for decades you will know why the conomy is this terrible, Look no further than the Fulani cabal, unfortunately Tinubu realized this too late. He taught the fulani were his friends, remember the fulani and yoruba are one mantra? Tinubu came to power using the igbo hate as his moto now it's all back fired

RepoMan007:
I am not understanding this whole forex loss concept.
If you deal with Naira, use local sugarcane, pay in Naira, and sell in Naira, how did such massive forex loss come about? Equipments?
Is it tied to imported parts?

ask dangote
Who u dey ask for here

I have nothing to say.

good for him. this man is one of nigeria major problem. infact a senior stakeholder in nigeria problem.


sugar became increasingly expensive that we couldnt see it. Bakers are frustrated

This is to inform us that sugar price will soar soon. Dangote no Dey make loss
Note this and thank me later

SoNature:
All the news about companies' performance we read on Nairaland is being deficit upon deficit. Does it mean no company makes money in Nigeria? If so, why are they still in business?

Only the banks and some oil companies are posting profit

The guy no go forgive himself for bankrolling this failure in power .

Him sef been don exploit us too much

losing #172 billion for dangote is like losing #2,500 for other nigerians... niqqa knows he will gain #712 billion in 2 days

Dangote incurred loss even after increasing the price of Sugar?

CountinBlessins:
Exactly!! alot of coys like Dangote were engaged in unethical anti progressive practices. Tell me if Dangote was so good to our economy , he has been running a government backed monopoly on sugar and cement for decades , why dont we have a sugar cain plantation? why dont we have billionaire farmers who made billions from selling sugar to dangote for decades? are you seeing it clearly?

People like Dangote are a danger to Nigeria and her economy! Dangote used hois fulani cabal backed monopoly to excavacte and evicerate the Nigerian economy and people while enriching the countries they imported from while answering the name Local business mongul.

Where are the farmers who have been making billions from selling sugar from their plantation to dangote to make sugar for decades? where are the salt billionaires he made who ahve been selling salt raws to him to refine into trable salt for decades?

While i am angry with Tinubu, if only you know what the fulani cabal used dangote to do to the Nigerian economy for decades you will know why the conomy is this terrible. Lok no further than the Fulani cabal, unfortunately Tinubu realized this too late. He taught the fulani were his friends, remember the fulani and yoruba are one mantra? Tinubu came to power using the igbo hate as his moto

You started well but portraying tribes different from yours as bad makes your contribution bias

tommy589:
You started well

So did you

Dangote employed thousand of Nigerians and he is enemy of Nigeria according to you while politicians employ nobody, steals the country blind but you can understand.
Here is how economics of a country is run. Companies like Google, Walmart, Microsoft etc that employs millions of Americans call the short by giving their inputs on what economic policies the government should pursue.
A whole state in US will make new laws to accommodate a company cos they create jobs. When Disney was having problem in Frorida, my home state of Virginia offer Disney, free land, tax free for 10 years to attract them cos of the 80k jobs. Such rules include lots of perks and freebies. What Dangote get is what he is entitled to cos he creates lots of jobs. That is how you attract jobs.

CountinBlessins:
Exactly!! alot of coys like Dangote were engaged in unethical anti progressive practices. Tell me if Dangote was so good to our economy , he has been running a government backed monopoly on sugar and cement for decades , why dont we have a sugar cain plantation? why dont we have billionaire farmers who made billions from selling sugar to dangote for decades? are you seeing it clearly?

People like Dangote are a danger to Nigeria and her economy! Dangote used his fulani cabal backed monopoly to excavacte and evicerate the Nigerian economy and people while enriching the countries they imported from while answering the name Local business mongul.

Where are the farmers who have been making billions from selling sugar from their plantation to dangote to make sugar for decades? where are the salt billionaires he made who ahve been selling salt raws to him to refine into trable salt for decades?

While i am angry with Tinubu, if only you know what the fulani cabal used dangote to do to the Nigerian economy for decades you will know why the conomy is this terrible, Look no further than the Fulani cabal, unfortunately Tinubu realized this too late. He taught the fulani were his friends, remember the fulani and yoruba are one mantra? Tinubu came to power using the igbo hate as his moto now it's all back fired

It has favored them and their family

tommy589:
You started well but portraying tribes different from yours as bad makes your contribution bias

I didnt ever bring in tribal supremacy. You are too emotional, you need to learn the difference between facts & truths versus bias. truth is said to be painful for a reason. Tinubu ran a tribalistic campisgn and painted igbos as bad then went on to tell the whole nation how yoruba nd fulani are one!!! But alas today the same fulani are ntry desperately to topple his government. And the same tinubu is trying to bring the very igbos he vilified to his side. who is the bad one here?

Declare loss and pay little or no tax return.
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majole:
Dangote imports crude sugar drom brazil and refines it in Nigeria

Our biggest importer and chopper of FX

I suspect these companies are just recording loses all over the place so that they don’t pay dividends to their shareholders. If you’re actually recording loses, how then are you still in business? Shareholders need to actually investigate these companies.

So in short, did he gain or lose?

No be this man them say get access to dollars from emefelie?


Someone once said that what they do is resell the dollars in the black market instead of using it for their businesses

Almunjid:
Dangote incurred loss even after increasing the price of Sugar?

But 'allegedly' got millions of dollars at low rate......


So what did he use the dollars to do?


Did he use if to strengthen his businesses


Or


He resold them at much higher rates in the black market?

Ok

blowjohn:
But 'allegedly' got millions of dollars at low rate......


So what did he use the dollars to do?


Did he use if to strengthen his businesses


Or


He resold them at much higher rates in the black market?

This Dangote matter dey difficult to understand. It seems he's making profit in one business and incurring loss in another.

Almunjid:
This Dangote matter dey difficult to understand. It seems he's making profit in one business and incurring loss in another.

A d he just recently was renamed richest in Africa o