Dangote Sugar Refinery reports N26.70bn profit for 2020

Dangote Sugar Refinery Plc (DSR) recorded profit after tax of N26.70 billion for the financial year ended Dec. 31, 2020.

The company stated this in its audited result released on the floor of the Nigerian Stock Exchange on Monday.

The profit after tax represented an increase of 33.2 per cent when compared with N22.36 billion recorded in the corresponding period of 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value.

The company’s group revenue increased by 33 per cent to N214.30 billion in contrast to N161.09 billion in 2019.

Gross profit increased by 40.4 per cent to N53.75 billion, against N38.29 billion posted in 2019.

In spite of the disruptions in the economy due to coronavirus pandemic, Dangote Sugar Refinery recorded an increase in production, which rose by 13.7 per cent to 743,858 tonnes compared with 654,071 tonnes posted in 2019.

The sugar group also posted increase in sales, which rose by 6.9 per cent, from 684,487 tonnes to 731,701 tonnes.

The company attributed the performance to operations optimisation strategy despite momentary disruption caused by civil unrest in the last quarter of the year.

It noted that the growth continued to benefit from sustained efforts to drive the expansion of customer base and several trade initiatives and investments.

Commenting on the result, the company’s Group Managing Director/Chief Executive, Mr Ravindra Singhvi, said despite the socio-economic uncertainties occasioned by the COVID-19 pandemic during the year under review, the sugar group continued on the growth path with commitments to improve on performance and generate value for all stakeholders.

This, he said, was reflected in the sales of 731,701 tonnes, and production of 743,858 tonnes being 6.9 per cent and 13.7 per cent increase in volumes over the comparative year 2019.

“2020 was indeed very eventful for our company ranging from the weak macroeconomic fundamentals caused by the underlying impact of COVID-19 pandemic.

“This saw to the steady rise in foreign rate, high inflation and the significant rise in our cost of production, to the worsening traffic gridlock on the Apapa Wharf road which led to delays and at times disruption of the distribution and deliveries to customers,” he said.

Singhvi added that the company activated its Business Continuity Management System during the lockdown due to the COVID-19 pandemic and disruptions caused by EndSARS protests.

He said this helped to minimise the adverse impact the situation had on businesses in the country.

He noted that one of the key highlights of the year was the successful completion of the Scheme of Arrangement – merger of DSR and Savannah Sugar Company Ltd. with effect from Sept. 1, 2020 to operate under one unified entity.

“We are confident the merger will enable us to achieve operational, administrative and governance efficiencies resulting in increased shareholder value.

“We will continue to pursue our Backward Integration Projects, and other key initiatives to grow our sales volumes, market share, optimise cost and operational efficiencies,” he added.