NIGERIA – One of Nigeria’s leading sugar processors, Dangote Sugar Refinery Plc, has recorded strong improvements in performance in the nine months ended September 30, 2022.

The company’s unaudited results posted on the Nigerian Exchange portal, revealed a profit before tax (PBT) of N36.27 billion (US$81.9m) for the period under review, rosing by N13.17 billion (US$29.75m) compared to N23.10 billion (US$52.17m) posted in the corresponding period in 2021.

Meanwhile, its Profit after tax (PAT) rose from N15.51 billion (US$35m) to N24.83 billion (US$56m), while revenue went up from N195.50 billion (US$441m) to N288.32 billion (US$651m).

Its top line performance mirrored growth in the 50kg, retail and molasses segments, which constituted 96.9 per cent, 1.9 per cent, and 0.6 per cent of revenue, respectively.

In addition, the combined effect of operational efficiency (evinced by a lower OPEX-to-sales ratio) and the trickle-down of the buoyant sales growth resulted in an operating profit margin expansion of 7.23 points to 15.32 per cent.

Group Managing Director, Dangote Sugar Refinery Plc, Ravindra Singhvi, attributed the positive results in the nine months to key trade interventions introduced during the year and positive market responses, reports Leadership Nigeria.

“Our impressive performance in the period demonstrates our resilience in the face of prevalent challenges, which rightly reflected in strong top line growth shown in the financial results,” he said.

It should be recalled that Dangote Sugar Refinery recorded a profit before tax (PBT) of N29.73 billion (US$67.15m) for the half year ended June 30, 2022 while profit after tax (PAT) hit N20.24 billion (US$45.7m) in that period.

Meanwhile, the company’s sugar industry competitor, Bua Foods has registered a 65.18% rise profit after tax to N30.045 billion (US$67.8m), in its third quarter that ended September 2022 from N18.1 billion (US$40.8m) during the comparable period in 2021.

The rise in profit is a reflection of the positive revenue attained during the period under review, rising by 39.25% to N120.467 billion (US$273m) from N86.509 billion (US$195.3m) as of Q3 2021, triggered by jump in sale of sugar and baking flour.

Meanwhile, its cost of sales rose by 32.43% to N79.393 billion (US$179m) from N59.949 billion (US$135.4m) in 2021, due to the high costs of energy and raw materials imports with its attendant foreign exchange burden that has remained a militating factor for the less-than-sterling performance of manufacturers.

Its administrative expenses grew by 29.11% to N1.894 billion (US$4.28m) in Q3 2022 to N1.467 billion (US$3.3m) in 2021 while selling & distribution expenses grew by 64.83% to N5.479 billion (US$12.3m) in 2022 to N3.324 billion (US$7.51m)the previous quarter.

Bua Foods focuses on processing of sugar, flour, pasta products, edible oils, and rice.

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