• Friday, April 12, 2024
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BusinessDay

Industrial consumption shore up Dangote sugar’s revenue by 28.8% to N276.5bn

Dangote Sugar posts loss for first time in 13 years as naira plunges

Dangote Sugar Refinery, a subsidiary of the Dangote Group and one largest food & beverage industries in the consumer goods sector has raked in its highest revenue in seven years, thanks to its booming industrial sugar business, BusinessDay’s finding reveals.

In its latest financial books, Dangote Sugar Refinery recorded N276.50 billion in revenue in 2021 — up by 28.8 percent from N214.30 billion recorded in 2020.

The sugar refinery’s revenue from sales of its 50kg sugar contributed N269 billion, 97 percent of the total revenue for the year ended 2021 compared to N206 billion in the previous year.

The company also said there was an increase in group sales volume, which rose by 5.7 percent to 773,341 tonnes, compared with 731,701 tonnes in 2020.

Read also: New sugar tax: A wrong step in the right direction

Production volume was also said to have gone up by 9.2 percent to 811,962 tonnes in 2021, compared with 743,858 tonnes in 2020.

According to the company, a gross profit of N50.21 billion and profit after tax of N22.05 billion were also recorded.

Further analysis by BusinessDay showed the company’s rising cost of sales grew 43.8 percent to N225.8 billion in the full year 2021 as against N157 billion in the full year 2020.

Assets increased by a whopping 263 percent to N369.5 billion in December 2021 compared to N101.7 billion in December 2020.

Investment income grew to N1.4 billion compared to N684.7 million in the comparable periods.

However, the sugar company’s inventory declined by 11 percent to N56 billion in the full year 2021 compared to N63 billion in the full year 2020.

Administrative expenses surged to N10.6 billion from N9 billion in the comparable periods.

Furthermore, the selling and marketing expenses increased 33.8 percent to N906 million in 2021 compared to N677 million in the corresponding period last year.

The company reduced borrowing to N984 million in 2021 compared to N1.18 billion in 2020.

The company’s cash generated from operating activities jumped to N129.2 billion in the full year 2021, a whopping 114.6 per cent from N60.2 billion in the full year 2020.

Earnings per share declined to N1.82 compared to N2.45 in the comparable periods.

chart showing Dangote sugar revenue from2015 to 2021
chart showing Dangote sugar revenue from2015 to 2021

“Our impressive performance in the year demonstrates our resilience in the face of prevalent challenges, which rightly reflected in strong topline growth shown in the financial results,” Ravindra Singhvi, Group managing director, Dangote Sugar Refinery, in his remarks, said.

Singhvi added, “We concluded the integration of our new 50kg packaging for the fortified and non-fortified sugar bags in the market. This refreshed our brand personality and led to a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst sustaining our market presence and leadership with the product quality.”

According to Singhvi, Dangote Sugar Refinery has continued to enhance Outgrowers Management at the Sugar Backward Integration sites.

“The aim is to support the economic growth of the immediate communities where the refinery operates with about 5,000 outgrowers when the projects have fully taken off. The key focus is achievement of the Dangote Sugar Backward Integration Projects targets and put Nigeria on the path of sugar self-sufficiency and on the world sugar map,” he said.

The sugar refinery places top priority on the Health and Safety of staff and partners remains a top priority with Apapa Refinery and Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State operating in compliance with stipulated health and safety protocols.