Connect with us

Hot News

Nigerian billionaire Aliko Dangote’s sugar company posts record earnings, with profits exceeding $56 million

Dangote owns 72.3 percent of Dangote Sugar Refinery.

Published

on

Aliko Dangote
Aliko Dangote.

Dangote Sugar Refinery Plc, a leading integrated sugar business majority owned by Africa’s richest man Aliko Dangote, reported a double-digit increase in profit during the first nine months of its 2022 fiscal year, owing to an increased demand for both fortified and unfortified sugar.

The group’s financial statement revealed that profits at the end of the first nine months of its 2022 fiscal period rose by more than 60 percent, from N15.51 billion ($35.4 million) in the corresponding period of 2021 to N24.83 billion ($56.6 million) as revenue increased.

The strong earnings growth can be attributed to increased sugar demand during the period, which resulted in higher sales and a 47.5-percent increase in revenue from N195.5 billion ($445.8 million) to N288.3 billion ($657.5 million).

Despite a difficult operating environment that resulted in a rise in raw materials costs, the sugar company was able to navigate the environment thanks to a combination of strategies, including its backward integrated projects in the country’s northern regions, which paid off handsomely during the period under review.

Dangote Sugar generated the majority of its $657.5-million revenue ($637.4 million) between January and September from the sales of unfortified sugar to pharmaceutical, food, and beverage manufacturers, according to the figures in its recently published financial statement.

On the other hand, a fractional N5.5 billion ($12.5 million) of its revenue was generated from the sale of Vitamin A-fortified sugar to distributors, which then sold it to small wholesalers, confectioners, and other smaller value-added enterprises that supply the Nigerian retail market.

Dangote, who has a net worth of $17.6 billion at the time of writing, owns 72.3 percent of Dangote Sugar Refinery, Nigeria’s largest household and commercial sugar producer.

The Nigerian billionaire businessman is anticipated to receive another sizable dividend from the sugar industry the following year thanks to the group’s strong financial performance, which increased retained earnings from N126.2 billion ($287.8 million) at the start of the year to N129 billion ($294.1 million) as of Sept. 30.

Earlier this year, the billionaire received dividends totaling N8.78 billion ($21.1 million) from his stake in the Lagos-based integrated sugar company.

Hot News

Kanye West faces new hurdle in business and personal life as Australian visa denial looms

The potential denial of a visa may be the latest in a long list of repercussions facing Kanye West.

Published

on

Ye
Kanye West, now formerly known as Ye.

African-American multi-industry creative, Kanye West, who is now formerly known as Ye, may face a new hurdle in his business and personal life as he may be denied entry into Australia.

The African-American rapper-turned-mogul had reportedly planned to meet the family of his new partner, Melbourne native Bianca Censori, but his anti-Semitic comments in October may prevent him from entering the country.

The news of a potential ban was confirmed by Australian Minister for Education Jason Clare, who stated that individuals who have made similar comments have been denied visas in the past and that Ye will have to go through the same process and answer the same questions.

“People like that who’ve applied for visas to get into Australia in the past have been rejected,” Clare said. “I expect that if he does apply, he would have to go through the same process and answer the same questions that they did.” 

Anti-Defamation Commission Chairman Dvir Abramovich and opposition leader Peter Dutton have joined in calling for Kanye West to be banned from entering Australia due to his “appalling” comments.

The backlash from Ye’s anti-Semitic remarks (Kanye West) has already had a significant impact on his business ventures and wealth. In October, he lost all of his partnerships through his brand Yeezy with companies such as Adidas and Balenciaga.

The termination of the Adidas partnership, which began in 2013, had a substantial impact on Ye’s net worth. Forbes reported that the termination of the deal led to a decline of more than $1.6 billion, taking Ye’s net worth from $2 billion to $400 million.

The cancellation of the partnership that grew the Yeezy line into a brand that accounted for up to €1.5 billion ($1.47 billion) of Adidas’ total sales over the last decade is expected to cost the German behemoth up to €250 million ($247 million) in earnings.

The aftermath of Ye’s anti-Semitic comments has been negative for his wealth and ranking as one of the richest Black individuals in the US and one of the richest businessmen globally.

The potential denial of a visa to enter Australia may be the latest in a long list of repercussions facing Ye because of his anti-Semitic comments. 

Continue Reading

East Africa

James Mwangi’s Equity Group to receive $4.1 million for acquisition of Spire Bank

Equity Group is the largest financial services conglomerate in East Africa.

Published

on

James Mwangi.

Equity Group Holdings, the Kenyan financial services giant led by James Mwangi, is set to receive millions of dollars from Mwalimu Sacco’s acquisition of financially distressed Spire Bank, as the teachers-backed lender agreed to pay Equity Group Ksh510 million ($4.1 million).

The deal is structured as an asset purchase transaction, backed by the Central Bank of Kenya (CBK), and will see Equity Group assume control over the assets and liabilities of the troubled bank.

The $4.1-million payment by Mwalimu Sacco to Equity represents the difference between the assets and liabilities of Spire Bank, implying that the bank holds zero value and the teachers have lost millions of dollars after purchasing a majority stake in 2014.

Mwalimu Sacco CEO Kenneth Odhiambo said the key consideration was to stop the bleeding and preserve Sacco’s bottomline for its members.

Equity Group will settle all redundancy costs for the more than 100 employees who will lose their jobs following the deal. The bank’s non-performing loans stand at Ksh2.63 billion ($21.1 million), and Equity’s immediate task will be to step up collections and recoveries.

The process of exiting Spire Bank was not as seamless as the initial acquisition, with Mwalimu Sacco citing the bank’s decline as beginning after the withdrawal of Naushad Merali’s deposits worth Ksh1.7 billion ($13.7 million), which represented one-fifth of the bank’s total deposits. 

The takeover of the troubled Spire Bank may present additional challenges and opportunities for Equity Group, which under the leadership of Kenyan businessman, Mwangi reported profits in excess of $280 million in the first nine months of 2022.

As of today, Equity Group shares on the Nairobi Securities Exchange are trading at Ksh44.95 ($0.361) per share, a 0.99 percent decrease from their closing price on Fri., Jan. 27.

This values the company at Ksh170 billion ($1.36 billion) and Mwangi’s 3.38-percent stake at Ksh5.74 billion ($46.1 million).

Continue Reading

Hot News

Nigerian billionaire Abdul Samad Rabiu’s food conglomerate achieves milestone with $195-million profit

Rabiu and his son, Isyaku Naziru Rabiu, own 99.8 percent of BUA Foods.

Published

on

Abdul Samad Rabiu
Abdul Samad Rabiu. ©Billionaires.Africa

BUA Foods Plc, a leading food conglomerate majority owned by Africa’s fourth-richest man Nigerian billionaire Abdul Samad Rabiu, has achieved a milestone in its financial performance as it reported record-high earnings at the end of its 2022 fiscal year.

With a profit surge surpassing N90 billion ($195 million), the company’s latest earnings report highlights its impressive growth and financial strength. The Abdul Samad Rabiu-led food conglomerate has reported a record high in its financial performance, with its profit for the year ending Dec. 31, 2022, surging by a staggering 30 percent.

The unaudited financial statements reveal that the group’s earnings rose from N69.77 billion ($151.5 million) in 2021 to N90.4 billion ($196.3 million) at the end of 2022, driven by an increase in revenue from its diverse product portfolio of sugar, pasta, bakery flour, and wheat bran.

The remarkable growth reflects the company’s ability to continuously expand its offerings and maximize profitability in a competitive market.

BUA Foods’ revenue surged from N333.37 billion ($723.8 million) to N417.82 billion ($907.1 million) due to increased sales of non-fortified sugar N79.15 billion ($171.8 million) to N144.29 billion ($313.2 million) and other food items such as sugar molasses, bakery flour, pasta, and wheat bran.

The increase in consumer demand for food items, including stockpiling, resulted in higher prices and a corresponding boost in revenue for the group.

The robust performance led to an increase in retained earnings and shareholder equity from N192.66 billion ($418.26 million) and N200.7 billion ($435.7 million) in 2021 to N237.15 billion ($514.86 million) and N245.21 billion ($532.35 million) in 2022.

The outstanding financial performance is expected to result in a substantial increase in dividend earnings for Rabiu and his son, Isyaku Naziru Rabiu, with their 99.8-percent ownership in the consolidated food conglomerate.

This will be a marked improvement from the N62.9 billion ($151.6 million) that they received in dividends last year.

Continue Reading

Trending