Yemisi Izuora
Shareholders of Dangote Sugar Refinery (DSR) Plc will receive N7.2 billion cash dividends for the 2015 business year, according to the sugar-refining company’s earnings report, which has shown a modest growth in sales.
The board of directors of DSR indicated that shareholders will receive a dividend per share of 60 kobo, about 62.5 per cent of the net earnings per share for the year.
Key extracts of the audited report and accounts of DRS for the year ended December 31, 2015 showed that total turnover rose from N94.86 billion in 2014 to N101.06 billion. Gross profit also improved from N18.63 billion to N20.73 billion. Operating Profit increased to N15.85 billion in 2015 as against N13.59 billion in 2014.
Also, the company recorded a profit before tax of N16.55 billion in 2015, representing an increase of eight per cent on N15.27 billion recorded in 2014. After taxes, net profit however dropped marginally from N11.64 billion to N11.54 billion. Earnings per share followed the trend, dropping slightly from 97 kobo in 2014 to 96 kobo. Total assets rose to N102.62 billion in 2015 as against N92.80 billion in 2014.
The highlights of the company’s operations in 2015 showed that season sugar production at Savannah was 6,610 tonnes, up from 6,333 tonnes in 2014. The full year refinery production at Apapa stood at 740,350 tonnes, down from 832,660 tonnes the previous year. Group sugar sales improved from 781,319 tonnes in 2014 to 782,120 in 2015. The company added 100 trucks to the fleet under its management.
Acting Group Managing Director, Dangote Sugar Refinery (DRS) Plc, Mr. Abdullahi Sule, said it was gladdening that the company was able to grow its revenue by 11 per cent and improve sales volumes compared to 2014 despite the current macro-economic challenges which Nigeria is facing.
According to him, the 2015 business year ended with remarkable increase in volume in the fourth quarter as its corporate strategy to reduce margins in September by 28 per cent and the addition of 100 trucks to its fleet improved delivery to customers and resulted in increased market share.
He outlined that the company has redeveloped its sequencing strategy to self-sufficiency through the production of refined sugar from cane and remain steadfast in its efforts to execute the “Sugar for Nigeria” project.
“We have already had a strong start to 2016 as we pick up market share from competitors and smugglers. We have increased our fleet and are now able to meet our customer orders timely. We expect raw sugar prices to remain volatile for the rest of the year as weather conditions continue to threaten production in 2015/2016 season but do not expect to exceed the average achieved in 2015,” Sule said.
He noted that refined sugar from cane remains the priority for the company adding that this path to self-sufficiency will eliminate reliance on foreign exchange as well as the volatility of raw sugar prices known with the currently import.