Dangote Sugar Posts N54bn Profit Before Tax In 2017

Dangote Sugar Posts N54bn Profit Before Tax In 2017

Dangote Sugar Plc has posted a profit before tax of N53.599 billion in its full year ended December 31, 2017. The company’s result released on the Nigerian Stock Exchange at the weekend revealed that profit before tax for the period increased by 173 per cent to N53.599 billion from N19.614 billion recorded in the corresponding period of last year. Also, the sugar refiner’s group profit after taxation for the year increased by 176.3 per cent to N39.78 billion compared to N14.395 billion in 2016, while its earnings per share rose to N3.31 from N1.20 in 2016. The management of the company proposed a final dividend of N1.25 per share, bring the total dividend for the 2017 business year to N1.75 per share.

The company had earlier paid interim dividend of 50 kobo per share. Furthermore, Dangote Sugar grew its revenue for the period by 20.44 per cent to N204.42 billion from N169.72 billion a year ago, which was driven by price of refined sugar. In the financial results, the firm said its gross profit increased for the period by 121.8 per cent to N50.99 billion from N22.99 billion recorded last year as a result of different strategies the management put in place to save cost. The Group liquidity position improved from N35 billion to N41 billion as at December 31, 2017. The company’s EBITDA up 113 per cent to N51.4 billion from N24.14 billion, while EBITDA margin stood at 25.15 per cent up from 14.2 per cent. Speaking on the results, acting group managing director, Abdullahi Sule, said, “we are very pleased with the 2017 business year, with an increased revenue growth of 20.4 per cent over N167.7 billion recorded during the same period in 2016, and N28 billion gross profit increase of 121.8 per cent, the best recorded in the history of the company.”

For 2018, Sule said “our focus remains the actualization of our Backward Integration Programme (BIP) plan with focus on the achievement of 1.080 million metric tonnes (MMT) sugar from our BIP sites in the next 6 years.” He added that while concerted efforts are being made to leverage our strengths and maximise every opportunity to increase the company’s market share and create sustainable value for all stakeholders.