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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.”

 

Standard chartered
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

 

Standard chartered
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Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com

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