BY: ONOME AMUGE
Dangote Sugar Refinery registered an increase in its production and sales volume for the full year ended December 31, 2021, the company reported in its recently released audited financial statement.
The increases were supported by positive market responses to key trade interventions introduced during the year and improved operational efficiency despite the adverse impact of the perennial Apapa traffic gridlock situation.
According to the producer of refined household and commercial sugar, its production volume rose by 9.2 percent to 811,962 tonnes in the period under review, an increase of 68,104 tonnes, in contrast to 743,858 tonnes posted in the corresponding period of 2020.
The sugar refinery also recorded an increase in sales volume, which rose by 5.7 percent to 773,341 tonnes in contrast to 731,701 tonnes in 2020.
For the full year, the company recorded a revenue of N276.50 billion, representing a 28.8 percent increase compared to N214.30 billion recorded in 2020. The company also posted a gross profit of N50.21 billion and profit after taxation of N22.05 billion.
However, the company noted that bottom-line profit was subjected to high production costs, occasioned by inflationary pressure, and impact of foreign currency devaluation.
Commenting on the report, Ravindra Singhvi, group managing director, Dangote Sugar Refinery, said the impressive performance demonstrates the company’s resilience in the face of prevalent challenges.
“During the year under review, we concluded integration of our new 50kg packaging for the fortified and non-fortified sugar bags in the market. This refreshed our brand personality and led to a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst sustaining our market presence and leadership with the product quality,” he explained.
Singhvi further stated that the company maintained its sustainability journey with the inclusion of United Nations Goal 13 to the Dangote Sugar Strategic Priority SGDs 2, 4, 6, 8 and 12 to ensure better contribution and more meaningful impact to the society.
He added that Dangote Refinery’s supply chain management process is being certified to the International Organisation for Standardisation sustainable procurement (ISO 40200) (Sustainable Procurement), while Bonsucro Certification is in view.
Dangote Sugar Refinery said it aims to produce 1.5 million tonnes of refined sugar annually from locally grown sugarcane within the next ten years, to serve both the local and international markets.
On its investment plan towards accomplishing its target, the company disclosed that it has committed over $700 million to its sugar projects and has commenced the rehabilitation and expansion of the Savannah Sugar Company Limited sugar factory at Numan, with a key focus to increase production capacity by 6,000 tonnes of sugarcane per day.