Despite the disruptions to the economy, owning majorly to the Coronavirus Disease, Dangote Sugar Refinery recorded an increase in production volume, which rose by 13.7 per cent, to 743,858 tonnes in the financial year ended December 31, 2020, compared to 654,071 tonnes in 2019.
The sugar group also posted increase in sales volume, which rose by 6.9 per cent from 684,487 tonnes to 731,701 tonnes.
According to the audited result released on the floor of the Nigerian Stock Exchange, the improvements were attributable to operations optimisation strategy despite momentary disruption caused by civil unrest in the last quarter of the year, tagged: #EndSARS.
Growth continued to benefit from the sustained efforts to drive customer base expansion and several trade initiatives and investments.
A breakdown of the results indicated that 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, compared to N38.29 billion in 2019, while Group profit after taxation for the year increased by 33.2 per cent to N26.70 billion as against N22.36 billion in 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value.
The Group Managing Director/Chief Executive Officer of Dangote Sugar Refinery Plc, Ravindra Singhvi, speaking on the results, said despite the socio-economic uncertainties occasioned by COVID-19 pandemic during the year under review, the sugar group continued on the growth path with commitments to improve o performance and generate value for all stakeholders.
This was reflected in the sales volume delivery 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.
According to Singhvi: “Our focus on the implementation of our key strategies in the face of the several challenges posed by the COVID Pandemic, the peculiarities of the Apapa traffic situation amongst others we achieved a topline growth in revenue of N214.30 billion, a 33.0% increase over 2019; a 53% YOY increase in PBT, and 33.2% increase in PAT.
“2020 was indeed very eventful for our company ranging from the weak macroeconomic fundamentals caused by the underlying impact of COVID-19 pandemic which saw to the steady rise in FX 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.”
Singhvi added that the company activated its Business Continuity Management System during the lock down periods due to the COVID pandemic and disruptions caused by EndSARS protests, which helped to minimise the adverse impact the situation had on businesses in the country.
He noted that one of the key highlights of during the year was the successful completion of the Scheme of Arrangement – merger of Dangote Sugar Refinery Plc and Savannah Sugar Company Limited with effect from September 1, 2020 to operate under one unified entity.
He added: “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, optimize cost and operational efficiencies.
“Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location.
“Our 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.
“Our Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets.
“To achieve this, Dangote Sugar Refinery Plc acquired Savannah Sugar Company Limited, located in Numan, Adamawa State in December 2012, and embarked on the ongoing rehabilitation of its facilities and expansion of its 32,000 hectares’ sugarcane estate.
“In September 2020, the scheme of merger between DSR and Savannah Sugar estate was completed which gave birth to a bigger and stronger business with considerable opportunity for growth and delivery of superior benefits to all stakeholders.
“The expansion and rehabilitation of the sugar estate is still ongoing as well as the development of the greenfield site acquired at Tunga, Nasarawa State for the achievement of DSR’s sugar for Nigeria development master plan.
“The Nasarawa Sugar Company Limited is the registered subsidiary of Dangote Sugar Refinery Plc.
“The 78,136 hectares Sugar Project Site is located at Tunga, Awe Local Government Area, of Nasarawa State.
“Massive developments in agriculture, irrigation infrastructure amongst others is ongoing at the site.
“Unfortunately, Lau/Tau project is still on hold following the lingering compensation issue between the communities and Taraba state government.”