Shareholders of Dangote Sugar Refinery Plc have approved a N500 billion Rights Issue to strengthen the company’s financial standing and accelerate strategic growth.
This capital injection is primarily intended to fund ambitious backward integration projects, a move endorsed during the company’s 20th Annual General Meeting in Lagos.
The company Chairman, Arnold Ekpe noted that while the economic environment remains challenging, the company saw a 25 percent turnover increase to N829.2 billion.
Despite a marked improvement in EBITDA, which rose to N149.6 billion, overall profitability was hampered by a N46.7 billion foreign exchange loss and high finance costs.
Ekpe emphasized that the Rights Issue will bolster the balance sheet and support the “Sugar for Nigeria” initiative, which aims to produce 1.5 million metric tonnes of sugar annually from 45,000 hectares of domestically cultivated cane.
In his remarks the refinery’s Group Managing Director, Thabo Mabe added that the company is working to secure approximately $1.3 billion to reach its 2030 production targets.
By leveraging the Numan and Nasarawa estates, Dangote Sugar intends to hit a production capacity of 600,000 tonnes per year.
Shareholders, including Mrs. Bisi Bakare, praised the board for maintaining Nigeria’s largest sugarcane out-grower scheme and navigating a difficult operating climate.