Business Briefs
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DANGOTE Sugar Refinery Plc has reported a revenue of N22.4 billion for the first quarter ended March 31, 2015, and a profit before tax of N3.8 billion, as against N25 billion and N5.8 billion, respectively in the corresponding period of 2014. Profit after tax decreased to N2.4 billion from N3.8 billion in 2014.
Commenting on the first quarter results, Graham Clark, group managing director, Dangote Sugar, said as anticipated, the first quarter of 2015 proved challenging in terms of operating environment, with sales volume being constrained by depressed market conditions.
He said sugar production slowed to match sales demand and stocks were built up in the period. Good advantage was taken of lower raw sugar prices, as the world sugar market continue to trend lower. Positive indications of increased market demand are emerging and we are well positioned to respond by increasing production and selling from available stocks. Group revenue will benefit from increased selling prices achieved during the first quarter of 2015.”
According to the company, its strategy is to become a global force in sugar production, working within Nigeria’s National Sugar Master Plan to end importation and sell more than one and a half million tonnes of locally produced sugar in Nigeria and neighbouring countries. “As part of this plan we acquired Savannah Sugar in December 2012 and are currently improving its farmed acreage and upgrading its production facilities. We intend to augment’s Savannah’s 32,000 hectares in Adamawa state by acquiring and planting a further 150,000 hectares across Nigeria, supporting the new plantations with modern production facilities that are located closer to the consumer,” Clark said.
Dangote Sugar Refinery Plc recorded a PAT of N11.6 billion in 2014 up from N10.8 billion. Based on the performance, the directors recommended dividend of N4.8 billion, which translates into 40 kobo per share. During 2014 the primary focus of Dangote Sugar was primary to enhance its operational efficiency, focus on growth plans increase sugar production, and to continue to provide for the needs and requirements of its customers, employees and stakeholders generally.
“Our performance in 2014 was impacted by operational challenges including disruptions to the supply of natural gas (our primary energy source) to the Apapa Refinery, currency depreciation and the challenges of the security situation in north-eastern Nigeria,” the company said.
Dangote Sugar is Nigeria’s largest producer of household and commercial sugar with 1.44 million tonnes of refining capacity able to supply most of the country through an extensive network of distributors. Its refinery at Apapa imports raw sugar from Brazil and refines it into white, Vitamin A fortified sugar suitable for household and industrial uses. On the other hand, its Savannah cane sugar factory located near Numan, in Adamawa State, has an installed sugar capacity of 50,000 tonnes.
— May 18, 2015 @ 01:00 GMT
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