Dangote Sugar posts N11.95bn profit in Q1

The profit before tax was higher by 25.79 per cent when compared with N9.5 billion posted in the corresponding period of 2020.

The company's Group Managing Director/Chief Executive Officer, Mr Ravindra Singhvi, disclosed this in an unaudited financial reports released by the Nigerian Exchange (NGX) Ltd. in Lagos.

Singhvi said the profit after tax during the period increased by 30.3 per cent to N8.30 billion in contrast to N6.37 billion in the comparative period of 2020

He said that the results were a reflection of the company's unrelenting drive to deliver consistent shareholder value.

According to him, group sales volume in the quarter rose by 5.7 per cent to 200,510 tonnes.

Singhvi attributed the growth in sales volume to sustained efforts to drive customer base expansion, several trade initiatives, and investments.

"Group production volume also increased by 4.3 per cent to 200,783 tonnes compared to 192,584 tonnes in 2020.

"The increase came from operations optimisation strategy despite the challenges of the Apapa traffic situation.

"The group revenue increased to N67.39 billion indicating an increase of 41.5 per cent over N47.64 billion in 2020," he said.

The group managing director said the company's first quarter financial results showed commitment to enhanced value creations for all stakeholders.

"We commenced the year on a fair footing as our 1st quarter 2021 financial results show our commitment to delighting our customers and consumers with high quality products and delivering value for all stakeholders.

"The health and safety of our people and partners remains our priority. Our refineries in Apapa and Numan continue to operate ensuring the health and safety protocols are upheld and our commitment to the environment is sustained," he said.

Singhvi noted that the company had experienced improved yield from its sugar cane plantations and would continue to partner outgrowers for the supply of sugar cane for production.

"We remain committed to the implementation of the 'Dangote Sugar for Nigeria' master plan as we continue to pursue our backward integration projects," he said.

Dangote Sugar Refinery is Nigeria's largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location.

The company's refinery located at Apapa Wharf Ports Complex, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.