Dangote Sugar Refinery Plc released its financial result for the full year ended 31 Dec 2015. The result showed that revenue rose by 6.54% from N94.8 billion in 2014 to N1.1 billion in 2015. Gross profit also rose by 11.27% from N18.6 billion to N20.7 billion in 2015.
The company also reduced operating expenses by 25.38% from N8.3 billion in 2014 to N6.2 billion in 2015.
Pre-tax profits rose by 8.35% from N15.2 billion in 2014 to N16.5 billion in 2015, however profit after tax dropped by 0.86% from N11.6 billion in 2014 to N11.5 billion in 2015.
Financial highlights
- Group revenue up 7% to ₦101.06 billion (2014: N94.86bn)
- Gross profit increased 11% to ₦20.73 billion, 21% margin achieved (2014: N18.63bn)
- EBITDA up 13% to ₦21.08 billion, EBITDA margin 21% (2014: N18.61bn)
- Profit before tax increased 8% to ₦16.55 billion (2014: N15.27bn)
- Profit after tax N11.54 billion (2014: N11.64bn)
- EPS at N0.96 (2014 : N0.97)
- Proposed dividend of N0.50 (2014:N0.40)
Operating highlights
- Seasonal sugar production at Savannah 6,610 tonnes (2014: 6,333 tonnes)
- Full year refinery production at Apapa 740,350 tonnes (2014: 832,660 tonnes)
- Group Sugar sales volume 782,120 tonnes (2014: 781,319 tonnes)
- 100 trucks added to fleet under management
- Construction of 1-tonne bagging facility ongoing
Abdullahi Sule, Acting Group Managing Director, said:
“2015 ended with remarkable volume pickup in the fourth quarter as our strategy to reduce margins in September by 28% and the addition of 100 trucks to our fleet improved delivery to customers. As a result we gained market share from competition and smugglers.
I am glad that we were able to grow our revenue by 11% and improve sales volumes compared to 2014 despite the current macro-economic challenges which we face in Nigeria, with an especially difficult first and second quarter.
To improve efficiency, we have redeveloped our sequencing strategy to self-sufficiency through the production of refined sugarfrom cane and remain zealous in our efforts to execute the “Sugar for Nigeria” project, which will replace our current production in the next 4-5 years as we execute the first phase of our backward integration plans, which now includes the Savannah rehabilitation, Guyuk and Zaria projects.”
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