NIGERIA – Refined sugar manufacturer, Dangote Sugar has increased dividend pay out to shareholders by 192% to US$58.38 million, a move that supports its vision of delivering decent returns on investments.
The company also announced US$336.38m payout on asset acquisitions for the 2017 financial year, according to the Guardian.
In the period, the sugar refinery achieved a group turnover of US$568.28m, a 20.4% increase compared to the same period in the year 2016.
Speaking at the company’s yearly general meeting in Lagos, the Chairman of Dangote Sugar Refinery Plc, Alhaji Aliko Dangote said, “With Profit Before Tax of US$149m, showing 173% increase over the 2016 and profit after tax of US$110.36m, the board has recommended to shareholders for approval, at this meeting, the payment of a final dividend of US$41.7m, being 125 kobo for the year ended December 31,2017.
The board had earlier approved the payment of an interim dividend of US$16.68m, being 50 kobo per share.
This brings the total dividends for the year under review to US$58.38m.”
Despite challenges and unfavourable business environment, Dangote said the firm spent US$336.38m on equipment, land acquisition, compensation to land owners, consultancy and related services.
With over US$83.4 million, only one of its refineries, Savannah Sugar produced sugar from own grown sugarcane in the country.
“Though the business terrain remains very challenging, we remain resilient in the face of the situation and are focused on increasing our market share and customer base as well as the creation of sustainable value for our stakeholders.
“Our priority in the current year is the achievement of our Sugar for Nigeria Project goals and sustenance of our leadership position by improving efficiency and growing our markets,” said the company’s Acting Managing Director/Chief Executive Officer Dangote Sugar Refinery Plc, Abdullahi Sule.
He said Dangote Sugar will continue to pursue its target to achieve 1.08 metric tonnes of refined sugar yearly in six years and eventually, 1.5 million metric tonnes in 10 years.
The company also remains focused on leveraging on its strengths to maximise every opportunity to generate sales, increase its market share and create sustainable value for all stakeholders.