Dangote Sugar earning increases to 36.21% in 2023

Dangote Sugar’s strong earning has attracted a strong bid for its stock, leading to a 36.21 per cent appreciation in the first half of 2023.

In 42 months, investors were richer with a 48.85 per cent capital gain between 2020 and June 31, 2023.

The company, in a statement issued on Sunday, June 18, quoted the Managing Director of APT Securities and Funds Limited, Kasimu Garba Kurfi, as attributing the development to the 2022 full year and Q1-23 results.

In its 2022 financial year, the company announced a 46.02 per cent increase in revenue to N403.24 billion from N276.05 billion, noting that the profit before tax grew 137.72 per cent to N82.30 billion from N34.02 billion.

It stated that profit after tax increased 148.25 per cent to N54.74 billion from N22.05 billion, adding that it paid a huge tax of N27.56 billion, up from N11.96 billion in 2021.

In 2022, Dangote Sugar announced N12,146,874 to its shareholders.

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The company noted that the uptrend in profit came amid rising costs as the cost of sales rose from N225.85 billion in 2021 to N311.28 billion in 2022, saying the increase in cost is due to currency depreciation, a rise in the cost of raw material importation, an uptick in distribution cost, a rise in diesel price and tax expenses.

Dangote Sugar said it deployed efficient cost management strategies to tame spiralling costs, noting that it successfully cut down selling and distribution expenses to N741 billion from N906 billion in 2021.

The company stated that finance cost fell to N3.42 billion from N5.21 billion.

It added: “Fund managers expect Dangote Sugar to maintain its stellar performance for the rest of 2023. The optimism is on the back of the impressive Q1-23 result and price gain in H1-23. In Q1-23, revenue rose 8.23 per cent from N94.44 billion in Q1- 22 to N102.22 billion.

“Profit before tax grew to N18.33 billion from N13.60 billion. This is in spite of an increase in finance cost to N8.05 billion from N3.50 billion.

“The result confirmed the effectiveness of the company’s cost containment strategies as selling and distribution expense declined to N174.56 billion from N260.81 billion in Q1-22. The cost of sale rose only marginally from N74.98 billion in Q1-22 to N76.47 billion in Q1-23.”

The Star