Dangote Sugar Refinery has posted a profit after tax of N7.4 billion, which represents 17.5 per cent over N6.3 billion achieved in the corresponding period in 2015.
Specifically, the company’s unaudited results for the half year ended 30 June, 2016, indicated that profit after tax rose from N6.3 billion in 2015 to N7.4 billion during the period under review, while profit before tax stood at N11.1 billion, 13.3 per cent rise when compared to N9.8 billion in the same period in 2015.
The company’s group revenue increased by 37.86 per cent to ₦70.5 billion compared to ₦51.1 billion in 2015, reflecting the increase in sales volumes during the period.
Gross profit grew by 9.57 per cent to N13.9 billion in contrast to N12.7 billion despite higher production costs mainly driven by increased LPFO usage and currency devaluation. The unit prices for gas and LPFO were also higher than in the comparative period.
Speaking on the six months unaudited results, the Acting Group Managing Director Abdullahi Sule, said “Despite market challenges experienced in the first quarter and operating challenges in the second quarter of 2015, we were able to grow our revenue compared to the same period in the previous year.
He explained that the firm would focus on increased sugar production at reduced conversion cost and improves distribution to match the increasing demand from our customers.
“Our greater growth strategy ‘Sugar for Nigeria’ continues to gain momentum as we execute the first phase of our expansion plans.The various operational and economic challenges we were faced with during the period under review notwithstanding, the overall performance shows an improved outlook for the period. Operating cost increased due to the devaluation of the naira.”
He explained that Dangote Sugar, Nigeria’s largest producer of household and commercial sugar has 1.44 million tonnes of refining capacity, with the ability to supply most of the country through an extensive network of distributors.
The Group’s refinery at Apapa, according to him, imports raw sugar from Brazil and refines it into white, Vitamin A fortified sugar suitable for household and industrial uses while Savannah cane sugar factory located near Numan, in Adamawa State has an installed factory capacity of 50,000 tonnes.