Dangote Sugar posts N34.6bn profit, recommends N1 dividend

NIGERIA’S largest sugar producer, Dangote Sugar Refinery has announced a profit before tax of N34.6 billion for the financial year ended December 31, 2018.

The Board has recommended a dividend payout of N1.10 kobo per ordinary share of 50k to be paid to shareholders for the year ended 31st December 2018. This is subject to shareholders’ approval at the 13th Annual General Meeting of the Company.

A breakdown of the result released on the floor of the Nigerian Stock Exchange (NSE) indicated that while gross profit stood at N39.7 billion, the refinery earned a revenue of N150.4 billion.

In terms of volume, seasonal sugar production at Savannah Sugar was 12,375 tonnes; full year refinery production at Apapa 564,785 tonnes, while Group sugar sales volume was 581,504 tonnes.

• Dangote refinery to address Nigeria’s crude oil refining challenge ―IPMAN

The Chief Operating Officer, Dangote Sugar Refinery, Ravindra Singhvi, speaking on the results said, “Though we maintained our market leadership position in the sugar sector, year 2018 was very challenging due to the impact of unlicensed sugar, smuggled and sold in our key markets nationwide, and the logistics challenges brought about by the continued Apapa traffic gridlock. The gridlock constrained availability of trucks required daily to evacuate the production volumes, while the influx of smuggled sugar exerted a downward pressure on selling prices.

“Despite efforts being deployed by the regulators to stem the tide, the influx of smuggled sugar into the markets spread further across our key markets in the North East and North West. We are currently focusing on process optimisation and the realisation of our Sugar Backward Integration Projects targeted at the production of 1.08 million metric tonnes of sugar in 6 years; from our various projects across the country.”

Dangote Sugar is Nigeria’s largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location. The refinery located at Apapa Wharf Ports Complex, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.

Its subsidiary, Savannah Sugar Company Limited, factory located at Numan, in Adamawa State, is an integrated sugar production facility, with an installed factory capacity of 50,000 tonnes. Covering 32,000 hectares, the Savannah estate has considerable opportunity for expansion which is underway as part of the Dangote Sugar for Nigeria Project, campaign.

“Our Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets in 10 years,” he added.