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Business News

Dangote Sugar explains its underwhelming 2018 result, blames smugglers

Dangote Sugar Refinery Plc’s full-year 2018 financial results did not reflect the expectations of stakeholders and analysts alike. And now, the company is disclosing why this happened.

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Dangote Sugar Refinery

Dangote Sugar Refinery Plc’s full-year 2018 financial results did not reflect the expectations of stakeholders and analysts alike. This is because the company’s over all performance was affected by the activities of smugglers.

The company also claimed that delayed delivery of its product to customers, which was caused by bad roads and gridlocks, hindered performance last year.

Dangote Sugar Refinery complained that smugglers’ activity affected its selling price and growth in the market, even as the company’s revenue dropped by 26 percent. Its net income fell by 44 percent.

As we reported, the company’s revenue dropped to N150.4 billion ($418 million) in 2018, while net income retreated 44 per cent to N22.2 billion.

How the company intends to curb smugglers impact

In a statement, the company said “Sales and production volumes were constrained” by smugglers. And to curb the illegal activities of smugglers and prevent a repeat, Dangote Sugar will “work with the regulatory agencies to combat smuggled sugar’’.

Government’s effort in curbing smugglers activities: Nigeria recently banned the importation of packaged sugar in a bid to support the growth of local producers in the country. This is part of the Government’s diversification efforts.

However, Nigeria’s poor border security has not helped the Government’s effort. This is because smugglers now make use of the porous borders to illegally bring in the contraband.

Other contributing factor to Dangote Sugar‘s revenue decline is the traffic gridlock experienced at the production site in Lagos. Lagos port handle about 80 percent of shipping activities in the West African nation. Yet, traffic gridlock has continue to affect distribution of products across the country.

Dangote Group recently disclosed that it will build more storage facilities for finished products at Dangote’s refinery this year, in order to better optimise its production cycle, which has been hampered by the unavailability of trucks due to the traffic gridlock.

Dangote Sugar declares final dividend

Dangote Sugar Plc has declared a final dividend of N1.10 per 50 kobo ordinary share, for the financial period ended Monday, December 31st, 2018.

Come Wednesday, June 19, 2019, the dividends will be paid electronically to shareholders
whose names appear on the Register of Members as at Friday, May 31, 2019.

Also, dividends will only be paid to shareholders who have completed their e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

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Coronavirus

Covid-19: WHO approves China’s Sinopharm vaccine

WHO has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.

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Covid-19: First world nations oppose waiving intellectual rights for vaccine development

The World Health Organization (WHO) has announced the approval of China’s Sinopharm vaccine for Covid-19 vaccination.  The vaccine is reported to have 79% efficacy against covid.

This was disclosed today in a report by Reuters. The vaccine would also be the second Chinese-made vaccine after Sinovac vaccine and would be the first developed outside Europe and North America to receive WHO accreditation.

“This expands the list of COVID-19 vaccines that COVAX can buy, and gives countries confidence to expedite their own regulatory approval, and to import and administer a vaccine,” WHO Director-General, Tedros Adhanom Ghebreyesus said.

The WHO added that the easy storage requirements make it highly suitable for low-resource settings.

“Its easy storage requirements make it highly suitable for low-resource settings,” a WHO statement said while also disclosing that the vaccine has been approved for people above the age of 18 to receive two shots.

“On the basis of all available evidence, WHO recommends the vaccine for adults 18 years and older, in a two-dose schedule with a spacing of three to four weeks,” the statement added.

The vaccine was created by Beijing Biological Products Institute, a subsidiary of Sinopharm subsidiary China National Biotec Group, with an efficacy of 79% for all age groups.

The WHO however, admitted that few older adults (over 60 years) were enrolled in clinical trials, so efficacy could not be estimated in this age group.

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The quest for vaccine efficiency got a major boost earlier this week as Nairametrics reported that the United States government announced that it supports the waiver of Intellectual Property Protections on Covid-19 vaccine development, in a bid to boost the fight against the pandemic, and says it will participate in the Okonjo-Iweala-led WTO negotiation to make it happen.

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Obituaries

“Mama Taraba”, Former minister and senator, Aisha Al-Hassan is dead

Ex-Women Affairs minister, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead

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A former Minister for Women Affairs and ex-Governorship Candidate in Taraba State, Aisha Jummai Al-Hassan, popularly known as Mama Taraba is dead.

According to media reports she died in a hospital on Friday in Cairo, Egypt at the age of 61.

Al-Hassan, who was a former senator of the Federal Republic of Nigeria from Taraba North Senatorial District, was the All Progressive Congress (APC) Governorship Candidate for Taraba in the 2015 general elections.

READ: Abba Kyari’s last letter to President Buhari

She later contested for the same seat on the platform of the United Democratic Party in the 2019 general elections after resigning from APC and as a minister in the administration of President Muhammadu Buhari on July 27, 2018.

The former senator was born on the 16th of September, 1959 in Jalingo, Taraba State, to Alhaji Abubakar Ibrahim, Sarkin Ayukan Muri.

READ: Chad’s President Deby dies of injuries suffered on the frontlines, as son takes over

Aisha Jummai Al-Hassan attended Muhammed Nya Primary School, Jalingo and LEA Primary School, Tudun Wada, Kaduna before proceeding to Saint Faith College (now GGSS) Kawo Kaduna where she studied between January 1973 and June 1977.

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