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Dangote Sugar Refinery Plc, a leading integrated sugar business majority owned by Africa’s richest man Aliko Dangote, has achieved a historic feat by recording an outstanding performance in its 2022 fiscal year, with profits surpassing the N50 billion ($110 million) milestone during the period under review.
The company’s recently published financial results revealed that it reported an impressive 148-percent increase in profits from N22.05 billion ($47.9 million) in 2021 to N54.74 billion ($119 million) at the end of its fiscal year, which ended on Dec. 31, 2022.
Dangote Sugar Refinery’s remarkable triple-digit surge in earnings during its 2022 fiscal year was mainly driven by sustained growth in the demand for sugar, resulting in an impressive 46-percent increase in revenue from N276.05 billion ($600 million) in 2021 to N403.24 billion ($876 million) in 2022.
The company’s outstanding financial performance was aided by its well-executed cost strategies, which kept operating costs in check.
Dangote Sugar Refinery was able to significantly reduce its distribution expenses from N906.5 million ($1.96 million) to N741.4 million ($1.61 million), while its administrative costs decreased slightly from N10.63 billion ($23.1 million) to N10.31 billion ($22.4 million).
Dangote Sugar Refinery’s impressive financial performance in its 2022 fiscal year led to significant increases in its retained earnings and total assets.
The company’s retained earnings grew from N116.25 billion ($252.4 million) to N158.84 billion ($345 million), while its total assets rose from N359 billion ($780 million) to N492.43 billion ($1.07 billion).
As a result of this outstanding performance, the board of directors recommended a dividend payment of N1.50 ($0.0032) per ordinary share of 50kobo ($0.00106) to shareholders, which amounts to a total payout of N18.15 billion ($39.4 million).
This dividend will be drawn from the company’s impressive profit of N54.74 billion ($119 million), showcasing its commitment to rewarding its shareholders and creating value for them.
The recently published financial results of Dangote Sugar Refinery have elicited a highly positive reaction from investors, with the company’s shares soaring by almost 10 percent during trading hours on the Nigerian Exchange.
This surge in buying interest reflects the confidence investors have in the leading integrated sugar business and its ability to continue delivering impressive financial results.
This renewed buying interest pushed the company’s market capitalization above N215 billion ($467 million), solidifying its position as the eighteenth most valuable company listed on the Nigerian Exchange.
