Dangote Sugar Refinery PLC (Bloomberg: DANGSUGA-NL), Nigeria’s largest sugar producer, announces unaudited Group results for the six months ended 30 June, 2017.
Financial highlights
- Group revenue increased to ₦118.7billion (2016: N70.47bn)
- Gross profit increased to ₦26.89billion (2016: N13.92bn)
- EBITDA increased to ₦27.06billion (2016: N12.89bn)
- Profit before tax increased 126% to ₦25.25billion (2016: N11.16bn)
- Profit after tax increased to N17.10billion (2016: N7.38bn)
- Proposed Half Year Dividend of N0.50 (2016: N0.00)
Operating highlights
- Group Sugar sales volume 360,416tones (2016:434,885tonnes)
- Group production volume 367,519tones (2016: 416,209tonnes)
- Apapa Refinery production volume 351,714 tonnes (2016:403,514tonnes)
- Apapa Refinery sales volume 350,855 tones (2016:422,488tonnes)
- Savannah production 15,805tonnes (2016: 12,695 tonnes)
- Savannah sales volume 9,561 tones (2016:12,397 tonnes)
Environment
- Terrible road conditions, and access road traffic grid lock in Apapa worsened by the rains
- Reduced production due to trucks unavailability
- Delayed dispatch of products and delivery to customers
- Very bad road conditions upcountry
- Liquidity squeeze and constrained consumer spending, though the inflation rate was contracting
- Relative stability in gas supplies
- Relative calm in the Niger Delta region and stability in the foreign exchange market
Acting GMD, Abdullahi Sule, Comments
“The outlook for the remaining quarters of the year remains promising despite the various economic challenges in the country. Our focus remains increasing our local market share to reinforce Dangote Sugar’s position as Nigeria’s leading producer, and achieving our backward integration sugar production plans, as Nigeria continues in its quest to achieve self-sufficiency.
Our greater growth strategy “Sugar for Nigeria” continues to gain momentum; the rehabilitation and expansion of Savannah Sugar is well underway, while the MOU for the 60,000 ha Tunga Sugar Project have been signed. We have continued towards overcoming every challenge we are being faced with in the realisation of our backward integration plans.”
| KEY PERFORMANCE INDICATORS Group | Group | ||||
| 30-06-2017 | 30-06-2016 | % change | |||
| Refined Sugar Produced (mt) | 367,519 | 416,209 | -12 | ||
| Refined Sugar Sold (mt) | 360,416 | 434,885 | -11 | ||
| Average Selling Price per bag(N) | 16,168 | 7,939 | 104 | ||
| N’ billion | N’ billion | ||||
| Revenue | 118.68 | 70.47 | 68 | ||
| Gross profit | 26.89 | 13.92 | 93 | ||
| Gross margin (%) | 22.66 | 19.75 | 15 | ||
| EBITDA | 27.06 | 12.89 | 110 | ||
| EBITDA margin (%) | 22.80 | 18.29 | 25 | ||
| Profit before Tax | 25.25 | 11.16 | 126 | ||
| Profit after Tax | 17.10 | 7.38 | 132 | ||
| EPS –( Kobo) | 285 | 123 | 132 | ||
| Dividend (kobo) | 50 | – | – | ||
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