Dangote Sugar Refinery Focuses On Sustainable Growth

Dangote Sugar Refinery Focuses On Sustainable Growth

In spite of the very difficult economic realities occasioned by the excruciating menace of covid-19 in 2021, the Dangote Sugar Refinery, a subsidiary of the Dangote Group and one of the largest food & beverage industries in the consumer goods sector has stayed focused on the pursuit of sustainable growth.

In defiance of the harsh operating environment in the year under review, the Board and Management demonstrated resilience by continued implementation of its strategic objectives.

Dangote Sugar Refinery recorded an appreciable increase in revenue for the year 2021. In its latest financial report, the Company posted N276.50 billion in revenue which is 29 percent of the N214.30 billion recorded in 2020.

According to the financial report, profit before tax of N34.021 billion and profit after tax of N22.052 billion were also recorded.

Further analysing the report, the company’s rising cost of sales grew 43.8 percent to N225.8 billion in the full year 2021 as against N157 billion in the full year 2020.

The sugar refinery’s revenue from sales of its 50kg sugar contributed N269 billion, 97 percent of the total revenue for the year ended 2021 compared to N206 billion in the previous year.

The company also said there was an increase in group sales volume, which rose by 5.7 percent to 773,341 tonnes, compared with 731,701 tonnes in 2020.

Production volume was also said to have gone up by 9.2 percent to 811,962 tonnes in 2021, compared with 743,858 tonnes in 2020.

Assets increased by a whopping 263 percent to N369.5 billion in December 2021 compared to N101.7 billion in December 2020.

Investment income grew to N1.4 billion compared to N684.7 million in the comparable periods.

However, the sugar company’s inventory declined by 11 percent to N56 billion in the full year 2021 compared to N63 billion in the full year 2020.

Administrative expenses surged to N10.6 billion from N9 billion in the comparable periods.

Furthermore, the selling and marketing expenses increased 33.8 percent to N906 million in 2021 compared to N677 million in the corresponding period last year.

The company reduced borrowing to N984 million in 2021 compared to N1.18 billion in 2020.

The company’s cash generated from operating activities jumped to N129.2 billion in the full year 2021, a whopping 114.6 per cent from N60.2 billion in the full year 2020.

Earnings per share declined to N1.82 compared to N2.45 in the comparable periods.

The Shareholders of the company unanimously approved a dividend pay-out of N12.147 billion, which represents N1.00 per share.

Speaking to shareholders at the 16th Annual General Meeting (AGM) of Dangote Sugar Plc, in Lagos, the Chairman of the Company, Aliko Dangote, said that despite the harsh operating environment, the Board and Management were not deterred in the pursuit of sustainable growth for the company and demonstrated resilience by continued implementation of its strategic objectives during the year, 2021.

According to Dangote, the Company’s performance during the year under review is commendable amidst the challenges and the negative impact of the COVID-19 pandemic on economic activities. “We furthered the implementation of process optimisation, cost savings, and product promotion strategies with the launch of our new brand identity and the pursuit of the Dangote Sugar Backward integration master plan”

He further stated that the Board and Management will continue to implement strategic actions to sustain and surpass this performance while engaging with all stakeholders in the sector and its communities to ensure the realisation of the objectives of the Company.

In his remarks, Group Managing Director, Dangote Sugar Refinery, Ravindra Singhvi, Group managing director, Dangote Sugar Refinery, said, “Our impressive performance in the year demonstrates our resilience in the face of prevalent challenges, which rightly reflected in strong topline growth shown in the financial results,”

Singhvi added, “We concluded the integration of our new 50kg packaging for the fortified and non-fortified sugar bags in the market. This refreshed our brand personality and led to a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst sustaining our market presence and leadership with the product quality.”

According to Singhvi, Dangote Sugar Refinery has continued to enhance Outgrowers Management at the Sugar Backward Integration sites.

“The aim is to support the economic growth of the immediate communities where the refinery operates with about 5,000 outgrowers when the projects have fully taken off. The key focus is achievement of the Dangote Sugar Backward Integration Projects targets and put Nigeria on the path of sugar self-sufficiency and on the world sugar map,” he said.

The sugar refinery places top priority on the Health and Safety of staff and partners and remains a top priority with Apapa Refinery and Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State operating in compliance with stipulated health and safety protocols.