Dangote Sugar Refinery Plc last week has
announced a profit before tax (PBT) of N11.1 billion for the six months ended
30 June, 2016.
The unaudited results for the half year
indicated that all performance measurement indices trended upwards. The results
showed that profit before tax rose by 13.3 per cent compared to N9.8 billion in
the same period in 2015.
Similarly, the sugar group recorded a profit after tax
(PAT) of N7.4billion, which rose by 17.5 percent over N6.3billion posted in the
corresponding period in 2015.
Group revenue increased by 37.86 percent to
N70.5 billion compared to 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,
Acting Group Managing Director of DSR, Abdullahi Sule, 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."
According to him, the various operational and
economic challenges the company was faced with during the period under review
notwithstanding, the overall performance shows an improved outlook for the
period.
Dangote Sugar is Nigeria's largest producer
of household and commercial sugar with 1.44 million tonnes of refining
capacity, with the ability to supply most of the country through an extensive
network of distributors.
The Group's refinery at Apapa imports raw
sugar from Brazil and refines it into white, Vitamin A fortified sugar suitable
for household and industrial uses while Savannah cane sugar factory located
near Numan, in Adamawa State has an installed factory capacity of 50,000
tonnes.
Covering 32,000 hectares in extent, the Savannah estate has
considerable opportunity for expansion which is underway.
culled from allafrica.com
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