Connect with us

Hot News

Aliko Dangote’s sugar business posts $30.6-million mid-year profit amid strong sales

The sugar refiner has a 1.44-million-metric-tonne refining capacity, making it Nigeria’s largest sugar producer.

Published

on

Aliko Dangote, Africa's wealthiest man.

Nigeria’s leading producer of household and commercial sugar has posted N12.60 billion ($30.6 million) as its mid-year profit for the year 2021. 

Dangote Sugar Refinery Plc’s profit follows a double-digit increase in revenue and represents a nine-percent growth compared to last year’s profit after tax of N11.58 billion ($28.14 billion).

The sugar refiner, which is majority owned by Africa’s wealthiest man Aliko Dangote, has a 1.44-million-metric-tonne refining capacity, making it the country’s largest household and commercial sugar producer.

Group sales in the first half of 2021 rose to 388,589 tonnes, while its production volume increased by 7.6 percent to 403,846 tonnes, driven by the optimization of operations during the period.

Despite a single-digit increase in production during the period, Dangote Sugar was able to grow its gross profit by double digits from N20.82 billion ($50.6 million) last year to N28.59 billion ($69.47 million).

However, the growth in gross profit represents a 37.3-percent increase compared to last year. This follows a 27.8-percent rise in revenue from N103.23 billion ($250.86 million) last year to N131.95 billion ($320.66 million) at the end of the first half of 2021.

Operational rigidities spurred by recurrent challenges with the Apapa traffic gridlock (in Lagos State) and the importation of raw sugar from Brazil pressured the group’s profit after tax downward to a single-digit growth of nine percent.

Dangote Sugar Refinery Group Managing Director Ravindra Singhvi said the impressive financial performance reflected the group’s strong footing in the first half of the year, as the financial results showed, with a stronger Q1 topline growth and a robust Q2 topline growth.

While commenting on product innovations within the group’s offerings, Singhvi noted new packaging designs for its 50-kilogram fortified and non-fortified sugar bags with the theme, “Dangote Sugar has a new look…. Same great quality,” which launched during the period.

As of press time, 4:40 PM (UTC), shares in the sugar company were trading at N17.50 ($0.04252), 0.57-percent lower than their opening price of N17.60 ($0.04277) for the year.

Dangote Sugar Refinery is the 28th most-traded stock on the Nigerian Exchange over the past three months. The group’s market capitalization on the local bourse is valued at N212.57 billion ($516.60 million).

Hot News

Nigerian billionaire Femi Otedola gains $12.7 million from stake in FBNH

FBNH is one of Nigeria’s largest financial services conglomerates.

Published

on

Femi Otedola. ©Billionaires.Africa

Nigerian billionaire Femi Otedola’s stake in the country’s oldest commercial bank, First Bank of Nigeria Holdings Plc (FBNH), has risen by more than $12 million in recent months, as shares in the financial services group rebounded strongly after falling below key levels.

According to data tracked by Billionaires.Africa, Otedola’s stake in FBNH has increased in value by N5.34 billion ($12.7 million) in the past 54 days, as investors continued to cherry-pick stakes in the commercial banking group after its price fell below N9 ($0.0214) in June.

FBNH is one of Nigeria’s largest financial services conglomerates. It is the non-operating holding company of First Bank of Nigeria Limited, the country’s oldest commercial bank, with active operations in 10 countries.

According to a flurry of trading updates published on the Nigerian Stock Exchange in June, Otedola sold 664,939,764 shares in four separate transactions, reducing his stake in the Nigerian lender from 2,717,282,140 shares, or 7.57 percent, to 2,052,342,376 shares, or 5.72 percent.

Shares in the financial group have increased by 31 percent since June 21, nearly 54 days ago, from N8.4 ($0.02) to N11 ($0.026) at the time of writing, amid renewed buying interest in the bank’s shares on the local bourse.

As a result of the double-digit increase in the shares of FBNH, the market value of Otedola’s 5.72 percent stake in FBNH has increased by N5.34 billion ($12.73 million), from N17.24 billion ($41.12 million) on June 21 to N22.58 billion ($53.85 million) at the time of writing this report.

The recent gains in his stake follow a dividend of N951.05 million ($2.29 million) from his equity stake in the financial services group that he received earlier this year.

Continue Reading

Hot News

Egyptian billionaire Yasseen Mansour gains $1.86 million in 74 days from Palm Hills stake

Mansou owns a sizable 5.6-percent stake in the Cairo-based real estate firm.

Published

on

Egyptian billionaire Yasseen Mansour. ©Billionaires.Africa

Egyptian billionaire Yasseen Mansour has recorded a EGP35.6-million ($1.86 million) boost in his net worth in the past 74 days, as shares in Palm Hills Development increased by nearly 19 percent in reaction to the company’s recently released first-quarter results.

Palm Hills Development, an operating subsidiary of Egypt’s largest conglomerate, Mansour Group, is a well-known real estate developer with active investments in Egypt. The company develops integrated residential, commercial, and resort communities.

Mansour, the chairman of Palm Hills Development and one of Egypt’s and Africa’s wealthiest individuals, owns a sizable 5.6-percent stake in the Cairo-based real estate firm.

The Egyptian real estate developer revealed that its profit increased by more than 40 percent in the first quarter of 2022, from EGP217.4 million ($11.36 million) in the first quarter of 2021 to EGP305.8 million ($16 million), owing to sustained growth in demand for properties in Egypt.

As a result of the firm’s strong financial performance, investors on the Egyptian Stock Exchange increased their buying interest in Palm Hills shares, resulting in an 18.6-percent increase in the firm’s stock price from EGP1.13 ($0.059) on June 1 to EGP1.34 ($0.07) on Aug. 14.

Mansour’s 5.6-percent stake in Palm Hills Development has increased in value over the past 74 days, from EGP191.94 million ($10 million) to EGP227.6 million ($11.89 million) at the time of writing.

This equates to a total gain of EGP35.6 million ($1.86 million) for the Egyptian billionaire, who ranks as one of the wealthiest men on the African continent, alongside his brothers Mohamed Mansour and Youssef Mansour, both of whom own Mansour Group and Palm Hills Development.

His net worth is estimated at $1.1 billion, making him one of Africa’s wealthiest businessmen.

Continue Reading

Hot News

Nigerian billionaire Abdul Samad Rabiu unveils $23.8-million security support fund

It is the single largest donation to a philanthropic cause made by a Nigerian businessman.

Published

on

Abdul Samad Rabiu. ©Billionaires.Africa

Nigerian billionaire businessman Abdul Samad Rabiu has announced the creation of the N10-billion ($23.8 million) Nigeria Security Support Fund through his philanthropic organization, the Abdul Samad Rabiu Africa Initiative (ASR Africa). He unveiled the project during a meeting with Nigerian President Muhammadu Buhari at the Aso Rock presidential residence in Abuja.

Rabiu launched the initiative to provide security equipment and medical and other supplies to the families of soldiers fighting terrorists in Nigeria’s northeast, and to strengthen local infrastructure.

The contribution marks the single largest donation to a philanthropic cause made by a Nigerian businessman, and follows the $3-million development initiative that Rabiu launched in Niger three weeks ago through ASR Africa. Last week, Rabiu received the Commander of the Order of Merit of Niger Award in recognition of his contributions to the country of Niger and its people.

Rabiu also praised Buhari for creating an enabling environment for businesses to thrive. He cited policies implemented by his administration, which, he said, aided the growth of his manufacturing conglomerate, BUA Group, which is one of the continent’s fastest-growing commercial groups.

He also promised to support the administration’s efforts in industrial development and security.

Rabiu established ASR Africa in April 2021 to promote long-term, impact-driven solutions to developmental issues affecting health, educational, and social development across Africa.

Continue Reading

Trending