Table of Contents
Africa’s richest man Aliko Dangote has revealed that Dangote Sugar Refinery, a subsidiary of his well-diversified manufacturing conglomerate Dangote Group, is on track to produce 1.5 million metric tonnes of locally grown sugarcane.
The move, which aligns with the country’s goal of achieving sugar sufficiency, matches well with the company’s strategic expansion roadmap and is expected to boost its revenue and earnings power, as well as create shared wealth for stakeholders.
Dangote Sugar Refinery presently has a refining capacity of 1.44 million metric tonnes, making it the country’s largest household and commercial sugar producer.
During the company’s 16th annual general meeting in Lagos yesterday, Dangote commented on Dangote Sugar Refinery’s performance in 2021, stating that the sugar-processing business delivered a resilient financial performance despite difficulties in its operating environment.
“Despite the challenging operating environment, the board and management were unafraid to pursue sustainable growth for the company and demonstrated resilience by continuing to implement its strategic objectives throughout the year 2021,” he said.
In 2021, Dangote Sugar Refinery posted a group turnover of N276 billion ($664.7 million), a 29-percent increase over the N214 billion ($515.4 million) achieved in the same period in 2020, while pre-tax profit increased to N34.02 billion ($81.9 million), up from N22.05 billion ($53.1 million) in 2020.
Despite the challenges faced in 2021, he said, the rehabilitation and expansion efforts under way at Dangote Sugar Numan Operations are progressing, and the firm is well on its way to help Nigeria achieve sugar sufficiency in the near future.
Ravindra Singhvi, group managing director and CEO of Dangote Sugar Refinery, said: “We remained ahead of the pack in implementation of the National Sugar Backward Integration Development Master Plan.”
“Steady progress is now being made as we continue the rehabilitation and expansion projects at Dangote Sugar, Numan, and development activities at the Nasarawa Sugar Company Limited, Tunga,” he added.
The company’s shareholders approved a total dividend of N12.15 billion ($29.2 million) as part of its commitment to creating wealth for shareholders, which translates to a N1 ($0.0024) per share dividend payout to investors.
Meanwhile, Dangote received a dividend of N653 million ($1.57 billion) from the dividend payout approved by shareholders, owing to his 5.38 percent stake in the integrated sugar company.
