Nigerian-based sugar manufacturer, Dangote Sugar Plc published its full-year 2022 audited accounts reporting revenue of N403 billion.
The revenues represent a 46% increase from the N276 billion reported at the same time in 2021. The company also beat prior year earnings reporting a profit after tax of N54.7 billion about 148% when compared to the N22 billion reported a year earlier.
The performance represents the company’s best performance on a local currency basis as a combination of higher prices and growth in volumes helped boost revenues.
The company declared last October that the group’s sales volume increased by 12.8% year on year to 637,037 tonnes in the 9 months period of the year. It also stated that group production volume decreased by 2.3% y/y to 594,665 tonnes (2021: 608,864 tonnes) on the back of the stock outage of raw sugar recorded in February and April.
Nonetheless, the challenges of the Apapa traffic situation have continued to persist. This suggests this year’s performance is on the back of higher price adjustments and shrewd cost management.
The Group Managing Director/CEO, of the company Ravindra Singhvi said “the Nigerian operating environment is still challenged resulting in sluggish economic activities amidst competitive market conditions. We, however, continued to leverage our strengths to maximize every growth opportunity and took deliberate steps to sustain our performance through cost optimization for improved margins.”
“During the period under review, we continued with the execution of our strategic thrust with a redefinition of our route to the markets, with strong sales and brand building focus has ensured DSR’s sustained position as a clear market leader in the sector, which have led to the improved performance recorded in the period.”
Dangote Sugar also declared a dividend of N1.5 per share representing a total amount of N18.2 billion. The share price fell by 0.78%.