Dangote Sugar Refinery Plc has reported a profit after tax of N4.6 billion in Q3 2022, reflecting a 58% growth from N2.9 billion in the same period last year.
The financial report by the firm shows that the profit is a trickle-down effect of increased revenue for the period, in spite of inflation, which continued at double-digit during the period.
Revenue for the period rose massively by 62% from N64 billion recorded in Q3 of 2021 to N103 billion in the Q3 of 2022. This is a result of an increase in revenue from the sale of sugar – 50kg and retail – in different regions of the North, Lagos, West, and East.
Notably, the company has one customer, NBC, whose sales make up 14% of total revenue. Total revenue from the customer within the 3rd Quarter of 2022 is N14.4 billion; and the revenue from the customer is included in the Lagos region.
The cost of sales also grew during the period from N55 billion last year to N84 billion this year, as the price of raw materials jumped, causing gross profit for the period to be valued at N18.6 billion, from N8.2 billion last year.
Other income was up to a value of N61 million in Q3 2022, from N34 million in Q3 2021. However, selling and distribution expenses, as well as administrative expenses, dipped to respective N188 million and N2.7 billion from respective N250 million and N2.8 billion, led by cuts in items such as legal, consulting and professional fees, local travels, and others.
The company’s total assets improved from N323 billion in 2021 to N474 billion in Q3 2022.