Dangote Sugar Refinery Plc says it has appointed Mr. Ravindra Singhvi as the Chief Operating Officer of the company. The firm, in a letter to the Nigerian Stock Exchange signed by the Company Secretary, Chioma Madubuko, said Singhvi’s appointment took effect from August 13, 2018. She said Singhvi had over 37 years of proven experience in leadership positions in manufacturing and processing in sugar, petrochemicals, cement, and textile products’ industries in India. According to Madubuko, prior to joining Dangote Sugar Refinery, Singhvi was the managing director and chief executive officer of NSL Sugar Limited, and the president of Indo Rama Group. THE PUNCH PAGE 28
Governor Akinwunmi Ambode of Lagos State, yesterday, warned that the current situation in Apapa and environs is a disaster in waiting if not properly and immediately addressed. The governor also tasked the Federal Government to revive existing Ports in other states of the federation so as to bring about a permanent solution to the perennial traffic congestion in Apapa axis of the state. He also blamed the chaotic traffic gridlock on interference from multi-agencies established by the Federal Government to monitor ports activities. The governor said this at the 3rd quarter, Town Hall meeting, 12th in the series, held at Community Primary School, Iberekodo, Akodo Road, Ibeju-Lekki area of the state. Ambode said: “We do not need tank farms within the Lagos metropolis anymore. There are 68 tank farms in Apapa alone. Beyond Apapa, they have approved tank farm in Ijegun axis. And that is where we have a huge population. That is a serious danger waiting to happen. “We need to distribute tank farm establishment to other parts of the state. This is what we believe should be done at this moment to free Lagos roads.” He also urged the Minister of State for Petroleum and Department of Petroleum Resources, DPR, to work towards reviving the pipelines and stop issuance of approval for construction of tank farms in the state. The governor said: “It is pathetic that the gridlock in the axis has become perennial in the state, it goes and come back. “But the challenge is to give a permanent solution and in that reason, President Muhammadu Buhari directed his Vice President. Yemi Osinbajo to visit and provide a permanent solution.” File: Gridlock as tankers shut down Apapa road. Revival of petroleum pipelines While commending President Buhari’s intervention, Ambode maintained that the crisis confronting the axis was more than the gridlock which required a holistic approach. We all must know that Apapa crisis is more than a traffic issue. The problem in Apapa is that there are too many agencies and establishments disturbing the fundamentals within the axis. “It is bad that we are still using trucks to lift petroleum products from Apapa to other parts of the country. “As it is now, other ports in Nigeria must begin to work immediately to decongest gridlock in Lagos. “Whatever has led to the continual use of trucks to lift fuel which is, vandalism of pipelines should be addressed immediately. “We believe that this will allow the road to become free. We don’t need to continuously use taxpayers’ money to build roads that are destroyed by tankers.” VANGUARD PAGE 10
Africa’s richest man and President of Dangote Group, Alhaji Aliko Dangote, Wednesday decried the whopping N1.5 trillion Nigeria spends yearly to import food into the country. Dangote stressed that such expenditure put a heavy pressure on Nigeria’s foreign exchange, adding that up to 80 per cent of the inputs in most manufacturing processes in Nigeria still rely on imported components. He noted that Dangote’s backward integration policy had birthed economic advantage for the country. According to him, Nigeria had not taken advantage of its huge population for economic growth, wondering why the country relegated local content while relying heavily on importation. Dangote, who was represented by the Group Executive Director at the company, Ahmed Mansur, spoke on the topic; ‘Industrialisation-Backward integration as a strategy for national development: The Story of the Dangote Group’, during the inauguration ceremony of the University of Ibadan Business School Complex. “With an enviable population and natural resources, not many countries have the advantages that Nigeria offers to manufacturers. Corporations, like Dangote Industries that long ago embarked on backward integration are now starting to reap the benefits. Backward integration is when a business exerts control over sources of raw materials or other business that are part of the overall manufacturing process. For example, a cement trader becomes backwards integrated when he takes ownership or control of bagging, cement grinding, and limestone mining. “It increases control and efficiency because companies are able to control quality and coordinate the delivery of raw materials or other supplies. Costs control, competitive advantages, diversification of talent and competencies are some of the other advantages of backward integration,” he explained. He said some of the benefits and successes that Nigeria economy had begun to enjoy must be protected by strict border control and other government policies. Thursday 26th July, 2018. THISDAY PAGE 52, NIGERIAN TRIBUNE PAGE 32, NEW TELEGRAPHY PAGE 35, VANGUARD PAGE 11
Between 2013 and 2017, 6 companies recorded positive growth in their earnings on the consumer goods index. Amongst these companies is Dangote sugar refinery which recorded an average growth rate of 30 percent, making the firm the best performing company by earnings growth on the consumer goods index during the period of analysis. The consumer goods index comprises the most capitalized and liquid companies in food, beverage and tobacco on the Nigerian Stock Exchange. The index is designed to provide an investable benchmark to capture the performance of the consumer goods sectors. There are currently 15 stocks on the consumer goods index. Despite the economic headwinds that have stifled economic growth, caused the first recession in 25 years and hurt consumer spending, a few consumer goods companies still managed to deliver stellar performances. Topping the earnings growth chart between 2013 and 2017 were Dangote Sugar (30%), NASCON (15%), Unilever (10%), Nestle (9%), Honeywell Flour (9%), and Flour Mill (3%). Companies who saw their bottom-line grow the slowest during the period are include International Breweries, Guinness Nigeria plc, Cadbury Nigeria Plc, Northern Nigeria flour mills, Vitafoam Nigeria plc and Champion Breweries plc. Dangote sugar saw a spike in its profits in 2016 as profit grew from N11.14 billion in 2015 to N14.39 billion in 2016 representing a 29 percent growth in profit. Profit after tax almost tripled in 2017 y/y to stand at N39.7 billion up by 175 percent. Analysis shows that Dangote sugar was rewarded by investors outperforming its peers to be the best performing stock within the period. The firm’s stock price grew by about 115 percent between 2013 and 2017. Within these periods, growth in earnings lagged growth in share price. It could mean the market is sees Dangote stock being undervalued thereby repriced at a higher price than its earlier price. Surprisingly, International Breweries, despite being amongst the biggest under performers based on earnings growth between 2013 and 2017, came behind Dangote sugar to be one of the best stock performers in the consumer goods index. Despite revenue grew by 40 percent in 2017, PBT fell significantly by 21 percent in the same year. This led to a decline in profit after tax (PAT) from N2.6 billion in 2016 to N1.03 billion in 2017. Analysis reveals that operating expenses as well as cost incurred by the firm jumped ominously within the period. BUSINESSDAY PG. 14, JULY 20, 2018.