Shareholders of Dangote Sugar Refinery Plc have approved a N500 billion Rights Issue aimed at strengthening the company’s financial base, accelerating expansion plans, and supporting its backward integration programme.
The approval was granted at the company’s 20th Annual General Meeting held in Lagos, where investors also applauded the firm’s performance in the past financial year and expressed confidence in its long-term growth strategy.
Chairman of the company, Arnold Ekpe, told shareholders that the business recorded notable operational improvements despite prevailing economic challenges. He highlighted strong revenue growth and a significant rise in earnings before interest, taxes, depreciation, and amortisation (EBITDA) as indicators of positive momentum.
However, he noted that profitability remained under pressure due to foreign exchange losses of N46.7 billion and finance costs amounting to N128.6 billion.
According to him, the company posted a turnover of N829.2 billion, representing a 25 per cent increase compared to 2024. Losses narrowed significantly to N64.1 billion from N270.9 billion recorded in the previous year, while EBITDA surged to N149.6 billion from N43.0 billion.
Ekpe assured investors that management is implementing measures to enhance efficiency and drive revenue growth, adding that proceeds from the Rights Issue would further strengthen the balance sheet and position the company for improved profitability.
He reiterated that the firm’s “Sugar for Nigeria” backward integration initiative remains central to its strategy, aimed at boosting local production, reducing reliance on imports, and cushioning the impact of foreign exchange volatility.
The programme also targets job creation and increased support for local farmers through out-grower schemes.
Ekpe disclosed that the company plans to achieve annual production of 1.5 million metric tonnes of sugar from locally grown sugarcane. This includes developing about 45,000 hectares of farmland, with 2.7 million tonnes of cane projected for Numan and 3.35 million tonnes for Nasarawa over the next five years.
He added that achieving these targets would require sustained investment in land development and production infrastructure.