Dangote sugar declares N22.05bn profit in 2021 financial year
Dangote Sugar PLC on Wednesday declared N22.05 billion profit for the full year ended December 31,2021.
Despite an inflation occured during the year which allowed increase in prices of commodities and services, the company was able to increase its sales by 28 per cent from N214 billion in the previous year.
Most FMCGs were able to record improved sales on the back of inflationary pressures during the period and Dangote Sugar, which refines and produces sugar, an everyday commodity, was not left out.
However, bottomline profit was largely subdued by high production costs and other expense line items.
A cursory view of the result shows that the company’s revenue was driven by impressive sales in the company’s segments classified by geographical areas, Lagos, North, West and East.
The segments combined delivered a revenue of N276 billion in the full-year period compared to N214 billion in the same period of 2020.The company recorded higher sales growth in the Northern region, compared to other segments.
The growth of Revenue from the North, was at 42 per cent year on year, which generated a total of N113 billion.
Lagos State sales generated N126 billion, 21 per cent increase year on year (y-o-y). While revenue from the West and East was N25 billion and N11 billion, respectively, both reporting a 24 per cent and 11 per cent increase. Also, the company’s revenue line is broken into sales of sugar (50kg and Retail) and molasses.
Dangote sugar generates 97 per cent of its revenue from the sale of 50kg sugar, suggesting that the 50kg sugar is the company’s major income stream.
Although the company increased its marketing expenses which was a contributor to the growth in revenue, the company’s full-year bottomline profit performance was affected by high costs of sales, driven by increase in cost of materials and as well as freight expenses, during the period. The company also makes money from interest income on bank deposits, as well as other income lines.
A further look at the financial results showed that the company’s long-term borrowings were reduced to N764 billion.
Total assets are now at N360 billion, as net assets increased marginally by 3 per cent to N129 billion.
Dangote Sugar Refinery observed declination in earnings per share for the period from N1.82 to N2.45.
The company last traded at N16.90 per share and has declined by 2.87 per cent from year-to-date.
