Dangote Sugar records N441.5bn revenue, N97.9bn profit in 2023

Dangote Sugar Plc has recorded a nine per cent increase in its group revenue to N441.5 billion and a recurring profit after tax up by 71.5 per cent to N97.9 billion for the full-year 2023.

This is just as Dangote Sugar said the Backward Integration Policy of the Federal Government on sugar will soon have a significant impact on sugar production in Nigeria, as the management of the company said it is targeting an annual production of 1.5 million metric tons of the product from locally grown sugarcane.

The Chief Executive Officer of Dangote Sugar, Ravindra Singhvi, disclosed this while presenting details of the company’s 2023 full-year result to the Nigerian Exchange over the weekend.

He said: “In line with the core objective of the National Sugar Master Plan which is for Nigeria to attain self-sufficiency in sugar production, Dangote Sugar is working on enhancing its existing refinery operations in Numan, Adamawa State, as well as developing its greenfield sites at the Nasarawa Sugar Company Project, amongst other sites.

“The company intends to achieve 1.5MT annually from locally grown sugarcane.”

Speaking on the 2023 financial result, Singhvi said: “Dangote Sugar achieved commendable results despite difficult operating conditions characterised by rising inflation and strained consumer incomes.

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“The company announced a 9 per cent increase in its group revenue to N441.5 billion for the year ended December 31, 2023, and a recurring profit after tax, up by 71.5 per cent to N97.9 billion.

“Our focus is to enhance the effectiveness of our supply chain management processes, leading to cost reduction and improved overall efficiency.

“Longer-term, the backward integration project, which aims to produce 1.5MT of refined sugar annually from locally produced sugarcane, is expected to alleviate some pressure on costs and our demand for foreign currency.”

Singhvi added that the proposed merger between Dangote Sugar, NASCON, and Dangote Rice Limited marked a significant milestone in the company’s journey.

H said: “This strategic move reflects our commitment to growth and innovation, positioning us to harness future opportunities in the foods industry.

“We have applied to the Securities and Exchange Commission for the approval of the merger, and we continue to engage the regulators. We are confident that this proposed merger will drive sustainable long-term success and yield greater returns to all our stakeholders.”

The Star