NIGERIA- Dangote Sugar Refinery in Nigeria has reported a profit before tax of US$96.24 million during its full year results for the financial year ended 31st December 2018.
The Nigeria Stock Exchange Listed firm grew it revenues to US$418.35 million as it continues to cement its position as the leading sugar producer both by volume and market share in the country.
According to a report by the Independent, the firm recorded sales volume of 581,504 tonnes with sugar production at Savannah Sugar at 12,375 tonnes while full year refinery production at its Apapa plant at 564,785 tonnes.
Commenting on the results, Ravindra Singhvi, the Chief Operating Officer, Dangote Sugar Refinery, said:
“Though we maintained our market leadership position in the sugar sector, year 2018 was very challenging due to the impact of unlicensed sugar, smuggled and sold in our key markets nationwide, and the logistics challenges brought about by the continued Apapa traffic gridlock.
Ravindra noted that logistics challenges had constrained the firms distribution system “while the influx of smuggled sugar exerted a downward pressure on selling prices.”
“Despite efforts being deployed by the regulators to stem the tide, the influx of smuggled sugar into the markets spread further across our key markets in the North East and North West.
We are currently focusing on process optimisation and the realisation of our Sugar Backward Integration Projects targeted at the production of 1.08 million metric tonnes of sugar in 6 years; from our various projects across the country,” Ravindra added.
With 1.44 million MT refining capacity, Dangote Sugar is Nigeria’s largest producer of household and commercial sugar.
The firm also operates the Savannah Sugar Company Limited, an integrated sugar production facility, with an installed factory capacity of 50,000 tonnes.
Savannah Sugar covers 32,000 hectares under the Savannah estate which is part of the strategic investments for future expansion of the firm under the Dangote Sugar for Nigeria Project campaign.
“Our Backward Integration goal is to become a global force in sugar production, by producing 1.5 million MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets” Ravindra noted.
Dangote Sugar said that greenfield sites like Savannah sugar will be integrated sugar production facilities with new plantation and modern facilities that are located closer to the consumers.