Dangote Sugar Plc, a subsidiary of Dangote Industries, has announced a revenue of 131.95 billion Norwegian rupiah for the first half of 2021, an increase of 27.82% from the 103.23 billion Norwegian rupiah in the same period in 2020.
This is based on the company’s latest financial report statement The second quarter of 2021.
Similarly, the financial report shows that net profit increased by N1.03 billion, from N11.58 billion in the same period in 2020 to N12.61 billion in the current period, an increase of 8.89%.
The company generates revenue from the sale of sugar, molasses and freight income. The accounting notes further show that sugar sales accounted for most of the revenue recorded during the period, while freight revenue generated the least revenue for the company.
In addition, company management can cut certain expense items, such as depreciation, administrative expenses, direct labor costs and administrative expenses, and sales and distribution expenses. However, the cost of raw materials increased from 61.58 billion yuan to 83.77 billion yuan year-on-year.
Over 10% of total sales during the period came from Nigeria Bottling Company and Qishang Bottling Co., Ltd. These companies purchased industrial unfortified sugar from Dangote Sugar Plc. At the same time, 35% of sales during the period came from industrial users such as confectionery and soft drink manufacturers.
However, other income during the period dropped from N409.68 million in 2020 to N128.91 million in the current period. This is due to a significant reduction in reserves no longer needed in its financial statements.
The financial status table shows that the company’s financial status is good, with net assets of N119.09 billion during the period.
Recall that in December 2020, the board of directors of Dangote Sugar Refinery Plc successfully closed its sugar business in Niger State.
This decision was made to reduce unnecessary costs, because the host community has begun to bring negative returns to the integrated sugar industry.
You should know
Dangote Sugar Refinery Plc is one of Nigeria’s leading integrated sugar companies and a major raw sugar refiner, focusing on the production of fortified and non-fortified sugar.
The company has a total installed capacity of 1.44 million metric tons (MT) per year and has developed a key expansion plan.
In addition to sugar production, its business activities include the distribution of refined white sugar to consumers and industrial customers in the country, and the export of its products to other West African countries.
In the first quarter, Dangote Sugar Refinery Plc reported revenue growth of 41.46%. Similarly, the current net profit increased by 30.3% from 6.37 billion US dollars to 8.30 billion US dollars.
Dangote Sugar Plc is currently trading at N18.50 per share. As of Friday, July 30, 2021, its market capitalization is N225 billion. Year-to-date performance shows that the company’s stock price has risen 5.11%.