Half year: Dangote Sugar Refinery posts N11.1bn PBT

Dangote Sugar Refinery has announced a profit before tax (PBT) of N11.1 billion for the six months ended June 30, 2016. The unaudited results for the half-year indicated that all performance measurement indices trended upwards. According to the results, profit before tax rose by 13.3 percent compared with N9.8 billion in the same period in 2015.

The sugar group recorded a profit after tax (PAT) of N7.4 billion, which rose by 17.5 percent over N6.3 billion posted in the corresponding period in 2015.

Group revenue increased by 37.86 percent to N70.5 billion compared with N51.1 billion in 2015, reflecting the increase in sales volumes during the period.

Gross profit increased by 9.57 percent to N13.9 billion in contrast to N12.7 billion, despite higher production costs mainly driven by increased LPFO usage and currency devaluation. The unit prices for gas and LPFO were also higher than in the comparative period.

Speaking on the six months unaudited results, Abdullahi Sule, acting group managing director, said: “Despite market challenges experienced in the first quarter and operating challenges in the second quarter of 2015, we were able to grow our revenue compared to the same period in the previous year.

“Our focus for the remainder on the year will be to increase sugar production at reduced conversion cost and improve distribution to match the increasing demand from our customers.

“Our greater growth strategy ‘Sugar for Nigeria’ continues to gain momentum as we execute the first phase of our expansion plans.

“The various operational and economic challenges we were faced with during the period under review notwithstanding, the overall performance shows an improved outlook for the period. Operating cost increased due to the devaluation of the naira.”