Dangote Sugar Plc released its 2014 Q1 results showing revenue dropped 6.4% to N25.8billion. Gross profit for the period was N7.1billion basically flat year on year. Pre-tax profits of N5.5billion was 6.1% higher compared to the N4.9billion posted a year earlier.
The Sugar giant in its last earnings call explained the dip in revenues (which was also reported in 2013 FY results) was as a result in a drop in global sugar prices which they have basically reflected locally. They also opined the drop in prices will continue this year. Fortunately the drop in prices also corresponded with drop in cost of sales as Gross profit margins came in higher at 28% compared to 26% a year earlier. Their latest acquisition Savanah Sugar is also yet to start making money for the company.
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