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Thursday, 20 December 2012

Dangote Sugar Targets N16bn Profit for 2012

20 Dec 2012
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0506F02.Aliko-Dangote.jpg - 0506F02.Aliko-Dangote.jpg
Alhaji Aliko Dangote
Dangote Sugar RefineryPlc has projected a profit before tax (PBT) of N16 billion for the financial year ending December 31, 2012 as against N8 billion earned in the corresponding period of 2011.
Managing Director of the company, Mr. Abdullahi Sule, who made this known in a chat with newsmen on a tour of the company’s refinery in Lagos yesterday, stated that the management is working hard to improve output to ensure adequate return to shareholders.
He assured that barring any unforeseen circumstance, the company’s shareholders were set to reap a bumper harvest given that the company had a policy of 70-75 per cent dividend payout.
The company, he said, had overcome the challenges it faced earlier in the year when a section of its refinery was gutted by fire.
“We had that accident in July this year and that same month we recorded the highest sales in this company. We sold more sugar than we have sold from January to June in any given month. As far as the company is concerned, we are okay. We have not increased the price of sugar as a result, rather we have reduced the price for our industrial customers. The general public will soon see the reduction in the price of sugar, “he said.
On the company’s future plans, he said the company planned to capitalise on its improved efficiency to get its products across the country.
“The first projection that we have is to sell enough sugar to our customers. Remember we are a refinery and there are more refinery coming. But most of them rely on importation of raw materials. Our projection for the next five years is that we will limit the amount of raw materials that we import and produce locally.
“During our last Annual General Meeting (AGM), we got the nod of our shareholders to acquire Savanna Sugar Limited, which is a fully integrated company. With that we have been able to do all the farming and harvest of the sugarcane locally. We are sure to produce our sugar locally without importing from Brazil. Our long term plan is to ensure that Nigeria is self-sufficient in sugar production, “he said.
He added that the company still controlled 75 per cent of its market share in Nigeria adding that what makes it unique is its quality.
“Until recently we were the only sugar refinery in Nigeria. Another thing is our size; we are second only to the Al-khali Sugar Refinery of Dubai in the whole world. Operationally we are situated in the nation’s premier port, we have dedicated jetties, and we have the brand name-Dangote and other advantages that make us unique,” he said.

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