Dangote Sugar Gains 17% Amidst Negative Earnings Expectation
Dangote Sugar Refinery Plc.’s market value rose by about 17% in the last five trading sessions on the Nigerian Exchange (NGX) due to increased buying interest on expectation that the company’s losses will moderate in the fourth quarter of 2024.
The positive price movement, which was supported by investors renewed interest in the company’s future earnings outlook, has reduced its discounted value on the local bourse. Dangote Sugar Refinery Plc has reported huge losses successively amidst a tough operating environment.
Its unimpressive earnings performance triggered massive sell pressures on the company’s shares in 2024. On Friday, Dangote Sugar Refinery Plc settled at N38.5 per share, about 57% discount below its 52-week price of N89.50 in the local bourse.
The stock opened 2025 at N32.50 and has since kept its momentum strong and solid with the expectation that its earnings would provide the market with much-needed palliative to stem activities of sell-side actors in the equities market.
According to data from the Nigerian bourse, Dangote Sugar stock market price climbed by 16.7% week on week to close at N38.50 on Friday, from N33 at the beginning of the trading sessions.
The fresh rally lifted Dangote Sugar market value to N467.654 billion on the Nigerian Exchange on Friday ahead of fourth quarter earnings expectations. The stock was strongly volatile in 2024. This made Dangote Sugar Refinery ranked as one of the worst performers in the equities market.
The company lost about 43% of its market value last year due to significant selling pressures. In its 9M 2024 results, Dangote Sugar Refinery Plc reported a 56.4% year-on-year revenue growth to N484.43 billion from N309.71 billion in 9M 2023, driven mainly by price increases in the period.
However, the company reported that loss before tax increased by 566.9% year on year to N275.58 billion in 9M 2024 compared to a loss of N41.35 billion in 9M 2023. After accounting for an income tax credit of N91.23 billion, loss after tax for Dangote Sugar Refinery settled at N184.36 billion, up 582.1% year on year from a loss of N27.03 billion in 9M 2023.
Some equities market analysts expect the company’s losses to moderate in the fourth quarter, but full-year results would remain negative. Dangote Sugar Gains 17% Amidst Negative Earnings Expectation CBN Opens FX Window for BDC to Stock up at NFEM Rate
