Rating Release

Agusto & Co. affirms the ‘A+’ rating assigned to Dangote Sugar Refinery PLC, with a negative outlook

 The rating expires on 30 June 2025.

 Agusto & Co. hereby affirms the “A+” rating assigned to Dangote Sugar Refinery PLC (“Dangote Sugar”, “DSR” or “the Company”). The rating affirmation reflects the Company’s good cash flow and liquidity positions, mainly supported by its favourable trade terms with customers and its moderate leverage metrics. The affirmed rating also considers DSR’s dominant position in the Nigerian Sugar Industry bolstered by its strong brand awareness, the ongoing backward integration programme into sugarcane production to moderate the reliance on raw sugar imports and its stable, qualified and experienced management team. Nonetheless, the rating is moderated by Dangote Sugar’s negative shareholder funds subsequent to the 2023 year-end precipitated by the material post-tax losses following the remeasurement of its foreign currency payables amid the significant devaluation of the local currency. This is in addition to the Company’s considerable exposure to commodity price risks, particularly global sugar prices, the fragile macroeconomic environment (heightened inflationary pressures and continued local currency depreciation) and the impact on its overall business.

Dangote Sugar, a member of the Dangote Industries Group, is a leading sugar processor in Nigeria. The Company is engaged in refining, distributing and marketing granulated sugar to key players in the food and beverage, pharmaceutical and skin care industries. Dangote Sugar operates a state-of-the-art sugar refining plant in Apapa with an annual capacity of 1.44 million metric tonnes (MT) and a 50,000-tonne per annum facility in Numan, Adamawa State. Dangote Sugar Refinery PLC has continued to invest heavily in its Backward Integration Programme (BIP) to improve raw material supply from its sugarcane plantations.