Dangote Sugar declares N34bn profit, pays N12.4bn dividend

Dangote Sugar Refinery Plc has declared a turnover of N276 billion for the financial year ended December 31, 2021, translating to a 29 per cent increase against the N214 billion recorded in 2020.

Its Chairman, Mr. Aliko Dangote, said this at the company’s 16th Annual General Meeting (AGM) on Wednesday in Lagos.

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.

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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,” he said.

He encouraged shareholders yet to embrace the E-dividend payment option to do so to ensure the prompt payment of their dividends.

Group Managing Director, Dangote Sugar Refinery Plc., Mr. Ravindra Singhvi, 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.

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.

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.

The Star