Dangote Sugar’s Pre-tax Profit Dipped By 8% To N16.5 Billion In 2015

Dangote Sugar Refinery Plc released its financial result for the full year ended 31 Dec 2015. The result showed that revenue rose by 6.54% from N94.8 billion in 2014 to N1.1 billion in 2015. Gross profit also rose by 11.27% from N18.6 billion to N20.7 billion in 2015.

The company also reduced operating expenses by 25.38% from N8.3 billion in 2014 to N6.2 billion in 2015.

Pre-tax profits rose by 8.35% from N15.2 billion in 2014 to N16.5 billion in 2015, however profit after tax dropped by 0.86% from N11.6 billion in 2014 to N11.5 billion in 2015.

Financial highlights 

• Group revenue up 7% to ₦101.06 billion (2014: N94.86bn)
• Gross profit increased 11% to ₦20.73 billion, 21% margin achieved  (2014: N18.63bn)
• EBITDA up 13% to ₦21.08 billion, EBITDA margin 21% (2014: N18.61bn)
• Profit before tax increased 8% to ₦16.55 billion (2014: N15.27bn)
• Profit after tax N11.54 billion (2014: N11.64bn)
• EPS at N0.96 (2014 : N0.97)
• Proposed dividend of N0.50 (2014:N0.40)

Operating highlights 

• Seasonal sugar production at Savannah 6,610 tonnes (2014: 6,333 tonnes)
• Full year refinery production at Apapa 740,350 tonnes (2014: 832,660 tonnes)
• Group Sugar sales volume 782,120 tonnes (2014: 781,319 tonnes)
• 100 trucks added to fleet under management
• Construction of 1-tonne bagging facility ongoing 

Abdullahi Sule, Acting Group Managing Director, said: 

“2015 ended with remarkable volume pickup in the fourth quarter as our strategy to reduce margins in September by 28% and the addition of 100 trucks to our fleet improved delivery to customers. As a result we gained market share from competition and smugglers.

I am glad that we were able to grow our revenue by 11% and improve sales volumes compared to 2014 despite the current macro-economic challenges which we face in Nigeria, with an especially difficult first and second quarter.

To improve efficiency, we have redeveloped our sequencing strategy to self-sufficiency through the production of refined sugarfrom cane and remain zealous in our efforts to execute the “Sugar for Nigeria” project, which will replace our current production in the next 4-5 years as we execute the first phase of our backward integration plans, which now includes the Savannah rehabilitation, Guyuk and Zaria projects.”

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