Dangote Sugar Grows 2020 Profit by 33%, Offers N1.50 Dividend

By Dipo Olowookere

The board of Dangote Sugar Refinery Plc has released the audited results of the company for the year ended December 31, 2020.

From the analysis, the firm posted a pre-tax profit of N45.6 billion in contrast to N29.8 billion recorded in 2019, while the post-tax profit went up to N29.8 billion from N22.4 billion, indicating 33 per cent growth.

In view of this, the board has recommended the payment of N1.50 dividend, higher than N1.10 paid to shareholders of the organisation in the preceding year.

Looking at the top line of the results released to the Nigerian Stock Exchange (NSE) on Monday, it was observed that the COVID-19 had little effect on the operations of the company as the revenue generated increased by 33 per cent to N214.3 billion from N161.1 billion in 2019.

The major contributor to the rise in the turnover for the year was from the sale of 50kg sugar, N206.4 billion versus N153.4 billion in 2019, while the retail end accounted for N5.9 billion, higher than N4.3 billion a year earlier.

The sale of the company’s product in Lagos was the major driver, N104.9 billion, while northern sales contributed N79.3 billion, with sales of sugar in the western and eastern parts of the country contributing N20.3 billion (N38.3 billion in 2019) and N9.8 billion (N8.9 billion in 2019) respectively.

Business Post observed that in the period under review, the cost of sales rose to N160.6 billion from N122.8 billion, while the gross profit stood at N53.8 billion in contrast to N38.3 billion a year earlier.

Dangote Sugar revealed that it raked N906.9 million from other income, higher than N606.3 million in 2019 and the increased due to the N396.9 million made from the sale of scrap.

There was a 16.8 per cent decline in the selling and distribution expenses to N676.9 million from N813.8 million, while the administrative costs jumped 15.4 per cent to N9.0 billion from N7.8 billion due to increase in management fees, donations and scholarship, employee costs, entertainment, secretarial fees, security expenses, amongst others.

In the accounting year, Dangote Sugar reported an operating profit of N44.4 billion, higher than N29.9 billion a year before, while the net finance costs stood at N1.9 billion as against N516.2 million.