Dangote Sugar Refinery Plc has declared a turnover of N276 billion for the financial year ended Dec. 31, 2021, translating to a 29 percent increase against the N214 billion recorded in 2020.
Its Chairman, Aliko Dangote, said this at the company’s 16th Annual General Meeting (AGM, on Wednesday in Lagos.
Mr Dangote revealed that the company’s profit before tax stood at N34.01 billion, while its profit after tax was N22.052 billion.
He said the Group’s Earnings before Interest, Taxes, Depreciation, and Amortisation (EBITDA) decreased to N48.5 billion with a margin of 18 per cent, a 35 per cent decrease compared to 27 per cent (N58.03 billion) for the same period in 2020.
The Group also declared a dividend of N12.147 billion for shareholders for the year under review.
He stated that upon approval, the dividend would be paid to shareholders in the register of members as at June 1, net withholding tax at the standard rate.
Dangote stated that the company’s performance during the year under review was commendable amidst the challenges and the negative impact of the COVID-19 pandemic on economic activities.
He expressed hope that the turnover for the year 2022 would be better given the strategies in place to reenergise distribution to serve its customers better in spite of infrastructural and environmental challenges.
“The goal of Dangote Sugar Backward Integration Master plan remains the achievement of 1.5 million metric tonnes annually from locally grown sugarcane in support of the quest for sugar sufficiency in the country by the Federal Government of Nigeria.
“This will be achieved in addition to the extended value chain benefits that will be derived from the projects including thousands of jobs that will be generated in the sector from these projects.
“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.
“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 our communities to ensure the realization of the objectives of the company,” he said.
He encouraged shareholders yet to embrace the E-dividend payment option to do so to ensure the prompt payment of their dividends.
Ravindra Singhvi, Group Managing Director, Dangote Sugar Refinery Plc, said the company’s sales and production volume grew to 771,321 tonnes and 811,962 tonnes respectively.
This, he said, meant a 5 per cent and 9 per cent volume growth respectively when compared with the same period in 2020.
Mr Singhvi noted that against the backdrop of COVID-19, the company’s continued implementation of operational efficiencies sustained its leadership position in the market in the face of various challenges.
He said to achieve this performance, the company continued the implementation of strategic actions towards its commitment to improve its performance and generate value for all stakeholders.
“During the year under review, we continued with the pursuit of our goals to create long term value for all stakeholders ranging from our employees, customers communities, investors, shareholders, etc.
“Our strategy is to achieve sustainable growth over the long term with the efficient management of operations in spite of the challenges for increased shareholders value through sound and responsible business decisions that deliver steady growth in earnings and dividends.
“During the year under review, we improved our brand visibility with the introduction of our brand new product packaging, which enhanced our market position, supported with improved service delivery to our customers,” he said.
Meanwhile, the company’s directors recommend for shareholders’ approval, a dividend of N1.00 for every ordinary share of 50 Kobo each for year ended December 31, 2021.
A shareholder, Bisi Bakare, commended the company for the food fortification award received for the year under review.
“I’m asking that we shore up on capacity utilisation to bridge the sugar demand gap locally and international to improve Nigeria’s export base,” he said.
Another shareholder, Patrick Ajudua, expressed satisfaction with the performance of the company, particularly at a time like this with the various environmental operating challenges.
He charged the management to improve upon the capacity utilisation of the plant to be better positioned to meet local and export needs.
The News Agency of Nigeria reports that Dangote Sugar Refinery Plc is one of the largest sugar refineries in sub-saharan Africa with a 1.44 metric tonnes refining capacity.
The company has a strategic backward integration master plan to produce 1.5 million metric tonnes of refined granulated sugar from locally grown sugar across various sites in Nigeria.