Dangote Sugar Rewards Shareholders with N12.147bn Dividend

Dangote Sugar Refinery Plc has reaffirmed its commitment to completing Sugar Backward Integration projects, calling it “the finest thing that has occurred to the sector.”

Speaking to shareholders at Dangote Sugar Plc’s 16th Annual General Meeting (AGM) in Lagos, Aliko Dangote, Chairman of the Company, said that despite the harsh operating environment, the board and management were not deterred in the pursuit of sustainable growth for the company and demonstrated resilience by continuing to implement its strategic objectives during the year 2021.

The dividend payment of N12.147 billion for the year was approved unanimously by shareholders. The dividend is worth N1.00 per share.

The Company under examination reported a Group turnover of N276 billion, a 29 percent increase over the previous year’s figure of N214 billion. Profit before tax was N34.021 billion, with an after-tax profit of N22.052 billion. Group EBITDA fell to N46.5 billion, with an 18% EBITDA margin.

According to Dangote, the Company’s performance during the fiscal year under review was respectable in light of the hurdles and detrimental impact of the COVID-19 epidemic on economic activity.“We furthered the implementation of process optimisation, cost savings, and product promotion strategies with the launch of our new brand identity and the pursuit of the Dangote Sugar Backward integration master plan”

He further noted that the Board of Directors and Management would continue to adopt strategic steps to sustain and exceed this performance, while working with all stakeholders in the sector and its communities to ensure the Company’s objectives are met.

On the company’s backward integration project, Dangote’s chairman stated that the goal of the Dangote Sugar Backward Integration Projects Master plan remains the achievement of 1.5 million MT annually from locally grown sugar cane in support of the federal government’s quest for sugar sufficiency in the country.

He noted that this would be accomplished in addition to the expanded value chain advantages obtained from the projects, which will include thousands of employment created in the industry as a result of these initiatives.

Despite the obstacles that Dangote Sugar Numan Operations will encounter in 2021, he stated that the factory and field restoration and expansion initiatives are progressing, saying  “The community tissues that came up were effectively managed, and we have continued to advance so far without any major disruptions.”

He also noted that “In 2021, our commitment to building a sustainable business remained on track with the principles of good corporate governance. We imbibed best practices, environmental and impact management in the day-to-day running of our business.”

He assured of the company’s commitment to the success of Sugar Backward Integration projects, which he described as the industry’s future in Nigeria, saying that this will keep us on our sustained growth path and that we will continue to deliver and improve our quality service while delivering value to all stakeholders.

In addition, Mr Ravindra Singhvi, Group Managing Director/Chief Executive Officer of Dangote Sugar, stated, “We stayed ahead of the pack in implementation of the National Sugar Backward Integration Development Master Plan.”

He did, however, state that the situation at the Lau/Tau project is unchanged,  “we continue to remain hopeful that the Taraba State government will resolve the lingering issues with the communities, while we focus on the development of other brown and green field project sites…Steady progress is now being made as we continue the rehabilitation and expansion project at Dangote Sugar, Numan, and development activities at the Nasarawa Sugar Company Limited, Tunga.”

Singhvi noted that the company is steadfast in its commitment to securing a sustainable future for its operations, while promising stockholders of brighter days ahead.

The shareholders praised the Company’s performance throughout the fiscal year under review. Mrs Bisi Bakare, a shareholder, praised the firm for receiving a food fortification award and paying a generous dividend during the fiscal year under review.

Mr Patrick Ajudua, another stakeholder, expressed pleasure with the dividends announced, particularly given the varied environmental operational concerns.

He entrusted the management with increasing the plant’s capacity utilization in order to be better positioned to satisfy local and export requirements.