Dangote Sugar reports 131.68% prifit growth

DANGOTE Sugar Refinery,
on Friday presented its
unaudited account for the half
year ended June 30, 2017, with
net profit soaring by 131.68%,
on the back of a 68.4% growth
in sales revenue, with the
company becoming the first
to offer an interim dividend
in this financial year. The
directors are offering 50 kobo
for every 50 kobo share held
by investors.
Revenue for the period
rose by N48.205bn from
N70.471bn to N118.676bn,
95.82% of which was derived
from the sale of refined
sugar in 50kg bags; just as
the Lagos regional market
accounted for N55.934bn of
the sales, followed by the
North- N41.927bn, West,
N14.456bn and N6.357bn
from the Eastern flank. A
further breakdown of the
numbers shows that “there
is a single customer who
buys industrial non-fortified
sugar that represents more
than 10% of total sales
during the year,” just as
there are large corporates,
including manufacturers
of confectioneries and soft
drinks, which it noted,
typically accounts for 30% of
its sales revenue.
Cost of sales equally rose to
N91.786bn, representing an
increase of about N35.233bn
or 62.3% from the previous
N56.553bn; the lion’s
share- N76.324bn, up from
N47.664bn of which went
into raw materials; following
which gross profit stood
at N26.89bn, as against the
N13.918bn reported in the
2016 half-year.
Selling and distribution
expenses for the period stood
at N411.147, from N488.233m;
administrative expenses was
also curtailed at N2.993bn
from N2.26bn, leaving
operating profit at N23.613bn,
a rise from N11.286bn in the
prior half year.
Investment income for
the period increased from
just N126.382, to N1.658bn,
fair value adjustment was
positive at N283.92m, from a
negative of N7.533m. Finance
costs rose to N30.1457, from
N249.291m, as profit before
tax climbed to N25.253bn
from N11.155bn.
The impressive growth in
net profit was also despite
the N4.378bn or 116% rise in
income tax expense, which
left net profit for the period
at N17.101bn, representing
a N9.72bn growth from
N7.381bn, which translated
to 285 kobo earnings per
share, as against the previous
123 kobo each.