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PRESS RELEASE

H1 2021: Dangote Sugar records strong growth

Dangote Sugar Refinery recorded strong improvements in performance indices in half-year ended June 30, 2021, as group revenue increased by 27.8 per cent to N131.95 billion in contrast to N103.23 billion recorded at the same period in the preceding year.  According to the refinery’s unaudited results for the period, Gross profit grew double-digit at 37.3 per cent to N28.59 billion compared to N20.82 billion at the preceding year due to better topline performance.

Group sales volume increased to 388,589 tonnes while production volume also increased by 7.6 per cent to 403,846 tonnes driven by operations optimization drive.

Commenting on the Company’s half-year 2021 performance, the Group Managing Director/CEO, Ravindra Singhvi said; “We commenced the year on a strong footing with impressive performance in first half as the financial results have shown, with a stronger Q1 topline growth and a robust Q2 topline growth year on year.

During the period under review we launched our new packaging designs for the 50kg fortified and non-fortified sugar bags with the theme “Dangote Sugar has a new look…. Same Great Quality”. The theme reaffirms the quality of our product and inspires a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst refreshing our market presence as the leading sugar brand in Nigeria.”

He added, “…as part of our Supply Chain Management Sustainability journey, we continued to enhance our Outgrowers Scheme. The technical and agriculture support provided for them over time has led to the improved yield from our Outgrowers sugarcane farms at the Numan Sugar Estate. This effort will be sustained to ensure the socio-economic growth of our immediate communities and improved sugar cane supply for production.

The team is committed to navigate the second half of the year, keeping the health and safety of our people and partners as top priority. Our Refinery in Apapa and Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State continue to operate in compliance with our health and safety protocols while ensuring our commitment to the environment and sustainable business practices are maintained.”

He stated that the recurrent challenges with Apapa traffic gridlock persisted during the 1st half of the year but expressed optimism that the truck call up system will address the situation. Achievement of the Dangote Sugar Backward Integration Projects targets, he added “remains our focus. We are resolute and will continue in our quest to put Nigeria on the path of sugar self-sufficiency and on the world sugar map.”

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

It has the Backward Integration goal of becoming 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 DSR Numan Operations (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 Company Limited 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 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 development in agriculture, irrigation infrastructure amongst others is ongoing at the site.

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PRESS RELEASE

Q1 2021: Dangote Sugar reports N11.95 billion profit

Nigeria’s largest producer of sugar, Dangote Sugar Refinery has reported profit before tax of N11.95 for the three months ended March 31, 2021.

According to the company’s unaudited financial reports for the period under review, the amount represents an increase of 25.6 per cent compared to   N9.5 billion posted in the corresponding period in 2020.

Profit after taxation for the period increased by 30.3 per cent to N8.30 billion in contrast to N6.37 billion recorded in 2020, reflecting management’s unrelenting drive to deliver consistent shareholder value.

Group sales volume increased in the quarter by 5.7 per cent to 200,510 tonnes. Growth in sales volume is attributable to sustained efforts to drive customer base expansion, several trade initiatives, and investments.

Group production volume also increased by 4.3% to 200,783 tonnes compared to 192,584 tonnes in 2020. The increase came from operations optimization strategy despite the challenges of the Apapa traffic situation.

According to the result, Group revenue increased to N67.39 billion indicating an increase of 41.5% over N47.64 billion. Growth in revenue advanced ahead of volume growth due to pricing benefits.

Commenting on the Company’s 1st quarter 2021 performance, the Group Managing Director/CEO, Ravindra Singhvi said, “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 remain 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.

We have experienced improved yield from our sugar cane plantations and continue to partner with our outgrowers for the supply of sugar cane for production.

Amidst the protracted socio-economic uncertainties occasioned by the COVID-19 pandemic and heightened insecurity during the quarter under review, we have continued on the growth path, as our talented and dedicated team have enabled us to mitigate some of the adverse impacts of the worsening traffic gridlock in Apapa and other macroeconomic headwinds.

We remain committed to the implementation of the “Dangote Sugar for Nigeria” Master plan as we continue to pursue our Backward Integration Projects.”

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.

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PRESS RELEASE

Dangote Sugar’s $700million BIP investments will promote infrastructure development

With a national annual import of over $337million, the management of Dangote Sugar Refinery Plc has declared its irrevocable commitment to the Backward Integration Policy (BIP) of the Federal Government to reverse the trend and make Nigeria self-sufficient in sugar production.

The company which is committing over $700million to its sugar projects told visiting members of the Nasarawa House of Assembly at the weekend that the company’s investments in sugar will revolutionalize the economy of the state and lift its people as other people-oriented infrastructures would come with the sugar projects.

The state lawmakers who were obviously excited at the sugar projects commended the Dangote Group for choice of the state for the project and the accelerated pace with which the project was being executed despite occasional delays arising from communal disagreements.

Nigeria is one of sub-Saharan Africa’s largest importers of sugar second only to South Africa, but the Dangote Sugar management assured the lawmakers that by the time the company fully completes its sugar projects in Nasarawa and Adamawa under the BIP, the nation would be saved of more than half of the forex expended on sugar imports annually.

General Manager for the Backward Integration Project, Dangote Sugar, Mr John Beverley said when the factory is fully operational, it would have the capacity to crush 12,000 tons cane per day (tcd), while 90MW power will be generated for both the company’s use and host communities.

He disclosed also that some 500km roads in all will be constructed to ease transportation within the vicinity, even as he solicited the support of the lawmakers in controlling the menace of land encroachment by settlers and itinerant farmers.

Mr Beverley said the company has been carrying out Corporate Social Responsibility (CSR) projects in the communities pointing out that so far the company has constructed boreholes, schools, Clinic and awarded scholarship among other CSR services.

In his response, the Speaker of the Nasarawa State House of Assembly Hon. Ibrahim Balarabe Abdullah, who led the team said that the $500 million so far expended on the investments by Dangote Sugar Refinery Plc in Nasarawa State is not only a blessing to Nigeria but the pride of Africa.

The Speaker and his team members, who were conducted round the company’s 78,000 hectares Backward Integration Project in Tunga Awe Local Government Area of the stated commended the Chairman of the Company. Alhaji Aliko Dangote for the gigantic project saying “seeing is believing”.

The Speaker said he was taken aback by the huge nature of the investment, noting that it would not only open up opportunities in the state but in Africa as a whole.

Aside the Speaker, other Principal Officers in his entourage are House Majority Leader Hon Umar Tanko Tunga(Awe North), Deputy Majority Leader Daniel Ogah Ogazi, the Chief Whip Hon Muhammad Muluku(Nasarawa Eggon East), Hon. Suleiman Yakubu Azara(Awe South) and Hon Muhammad Alkali(Lafiya North).

The Speaker said the lawmakers were ready to partner and support the company towards the realization of the sugar project through relevant legislation.

According to him, the news that the project would create about 150,000 jobs is a welcome one, more so when it is no secret that the project site was once a forest harbouring criminals before its acquisition by the Dangote Sugar Refinery.

Also shedding light on the project, the General Manager, Government and Stakeholders Relations, Mr Bello Dan Musa said the President of Dangote Group is passionate about lifting Nigeria’s economy through strategic investment and job creation.

He added that the huge project does not only fit into the Backward Integration Policy and National Sugar Master Plan(NSMP) but the diversification agenda of the government.

The Dangote Group is the biggest private sector investor in the Backward Integration Policy of the Federal Government. The policy seeks to gradually halt the importation of sugar into the country.

It would be recalled that in 2017 the Dangote Industries Limited signed a landmark $700million Memorandum of Understanding with the Nasarawa State Government.

The integrated sugar complex to be located in Tunga, Awe Local Government Area of Nasarawa state, comprises an initial 60,000ha sugar plantation and two sugar factories with the capacity to produce 430,000tpa of refined white sugar representing about 30% of the country’s consumption and would be the largest plant in Nigeria.

When Phase II of the project is completed, according to the company, it would make it the largest sugar refining plant in Africa.