H1 2021: Dangote Sugar records 27.8% increase in revenue
By Kayode Tokede
Dangote Sugar Refinery recorded strong improvements in performance indices in half year ended June 30, 2021, as group revenue increased by 27.8per cent to N131.95 billion in contrast to N103.23 billion recorded at the same period in the preceding year.
According to the refinery’s unaudited results for the period, Gross profit grew double digit at 37.3 per cent to N28.59 billion compared to N20.82billion at the preceding year due to better topline performance.
Group sales volume increased to 388,589 tonnes while production volume also increased by 7.6 per cent to 403,846tonnes driven by operations optimization drive.
Commenting on the Company’s half year 2021 performance, the Group Managing Director/CEO, Ravindra Singhvi said:”We commenced the year on a strong footing with impressive performance in first half as the financial results have shown, with a stronger Q1 topline growth and a robust Q2 topline growth year on year.
During the period under review we launched our new packaging designs for the 50kgfortified and non-fortified sugar bags with the theme “Dangote Sugar has a new look…. SameGreat Quality”. The theme reaffirms the quality of our product and inspires a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst refreshing our market presence as the leading sugar brand in Nigeria.”
He added, “…as part of our Supply Chain Management Sustainability journey, we continued to enhance our Out growers Scheme. The technical and agriculture support provided for them over time has led to the improved yield from our Out growers sugarcane farms at the Numan Sugar Estate. This effort will be sustained to ensure the socioeconomic growth of our immediate communities and improved sugar cane supply for production.
The team is committed to navigate the second half of the year, keeping the health and safety of our people and partners as top priority. Our Refinery in Apapa andBackward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State continue to operate in compliance with our health and safety protocols while ensuring our commitment to the environment and sustainable business practices are maintained.”
He stated that the recurrent challenges with Apapa traffic gridlock persisted during the 1st half of the year but expressed optimism that the truck call up system will address the situation. Achievement of the Dangote Sugar Backward Integration Projects targets, he added “remains our focus. We are resolute and will continue in our quest to put Nigeria on the path of sugar self-sufficiency and on the world sugar map.”
Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location. The refinery located at Apapa WharfPorts Complex, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.
It has the Backward Integration goal of becoming a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets.
To achieve this, Dangote Sugar Refinery Plc acquired DSR Numan Operations (SavannahSugar Company Limited), located in Numan, Adamawa State in December 2012, and embarked on the ongoing rehabilitation of its facilities and expansion of its 32,000 hectares’ sugarcane estate. In September 2020, the scheme of merger between DSR and Savannah Sugar Company Limited was completed which gave birth to a bigger and stronger business with considerable opportunity for growth and delivery of superior benefits to all stakeholders. The expansion of the sugar estate is still ongoing as well as the development of the greenfield site acquired at Tunga, Nasarawa State for the achievement of DSR’s sugarfor Nigeria development master plan.
The Nasarawa Sugar Company Limited is the registered subsidiary of Dangote Sugar Refinery Plc. The 78,136 hectares Sugar Project Site is located at Tunga, Awe Local government Area, of Nasarawa State. Massive development in agriculture, irrigation infrastructure amongst others is ongoing at the site.
