Dangote Sugar Records N19bn Gross Profit in Nine Months
By Goddy Egene
Dangote Sugar Refinery Plc has reported a gross revenue of N115.3 billion for the nine months ended September 30 2016. According to the unaudited results released at the weekend on the floor of the Nigerian Stock Exchange (NSE), the earnings for the period indicate a 58 per cent growth over N78 billion posted in the corresponding period of 2015.
An analysis of the result
showed that gross profit rose to N19 billion compared to N18.7 billion in 2015 representing a 1.2 per cent increase. Profit before tax rose from N14.2 billion to N15.3 billion while profit after tax grew from N9.3 billion to N10.1 billion.
Speaking on the performance, the Acting Group Managing Director, Dangote Sugar, Abdullahi Sule said: “Despite the continued challenges in the economic and business environment, orchestrated by
the continued rise in inflation, insufficient foreign exchange to finance raw materials and equipment inputs, our revenue grew by 58.0 per cent over the corresponding period in year 2015.”
“We continued with efforts at actualising our sugar Backward Integration Master Plan with focus on Savannah Sugar, Lau/Tau and other project sites in the first phase of the project.
He noted that the board and management remain resilient
and optimistic that their set goals will be achieved with the continued implementation and review of their initiatives to grow sales volumes, increase our market share, and focus on the actualisation of our “Sugar for Nigeria” backward integration projects plan.”
Sule had early this year said 2016 commenced on a good footing as the company continued to increase its market share and implementing various initiatives and projects towards
the actualisation of its target within the next five years.
DSR has 1.44 million tonnes of refining capacity, with the ability to supply most of the country through an extensive network of distributors. The refinery at Apapa imports raw sugar from Brazil and refines it into white, Vitamin A fortified sugar suitable for household and industrial uses.
The Savannah cane sugar factory located near Numan, in Adamawa State has an
installed factory capacity of 50,000 tonnes. Covering 32,000 hectares in extent, the Savannah estate has considerable opportunity for expansion which is underway.
DSR has the strategy of becoming a global force in sugar production, working within Nigeria’s National Sugar Master Plan to end importation and sell more than 1.5 million metric tonnes of locally produced sugar in Nigeria and neighbouring countries.