Dangote Sugar Refinery Plc has urged the Federal Government to faithfully follow through with the Backward Integration Policy in the sugar industry as the nation stands to rake in foreign exchange up to $700 million yearly from Sugar production self-sufficiency.
Chairman of Dangote Sugar Refinery, Aliko Dangote, at its 15th Annual General Meeting (AGM) held in Lagos, said that allowing for distortions in the sugar masterplan framework will adversely affect the target of the nation attaining self-sufficiency as projected.
He described the backward integration policy as commendable which will not only reduce imports of raw sugar but save the nation’s enormous foreign exchange used for importation.
Dangote expressed delight that the BIP in the Sugar industry is going on well and said:
If the National Sugar Master Plan is followed strictly and the players all follow the rules, the country will be better for it as Nigeria will save between $600million and $700 million annually as forex.
Addressing the shareholders, Dangote opined that despite the disruptions in the economy occasioned by the COVID-19 pandemic, Dangote Sugar Refinery has announced an increase in production volume which rose by 13.7 per cent to 743,858 tonnes in the financial year ended December 31, 2020, compared to 654,071 tonnes in 2019.
He stated that the Company posted a Group turnover of N214.3 billion a 33percent increase over the N161.1 billion in 2019, while in the same period, the Sugar Group also posted a 6.9 per cent increase in sales volume from 684,487 tonnes in 2019 to 731,701 tonnes in 2020.
The Board of the company therefore declared a dividend payment of N18.22billion to the shareholders, amounting to N1.50kobo per ordinary share of 50k each.
According to Dangote, the improvements were attributable to operations optimization strategy despite the disruption caused by civil unrest in the last quarter of the year.
Our growth continued to benefit from the sustained efforts to drive customer base expansion and several trades initiatives and investments.
Gross profit increased by 40.4 per cent to N53.75 billion, compared to N38.29 billion in 2019 while Group profit after taxation for the year increased by 33.2 per cent to N26.70 billion as against N22.36 billion in 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value.
Dangote said the Company has revised its sugar production target to 550,000 metric tonnes achievable by 2024 in line with the revised plan on the BIP by the federal government.
In his remarks, the Group Managing Director/Chief Executive Officer, Mr Ravindra Singhvi, speaking on the results said the sugar the group continued the growth path with commitments to improve performance and generate value for all stakeholders.
He explained that this was reflected in the sales volume delivery of 731,701 tonnes, and production of 743,858 tonnes being 6.9 per cent and 13.7 per cent increase in volumes over the comparative year 2019.
He said the Company would ensure all hands are on deck to meet the targeted 550,000tonnes projected to be achieved by 2024.
Mr Singhvi stated:
Our Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets.”
Our focus on the implementation of our key strategies in the face of the several challenges posed by the COVID Pandemic, the peculiarities of the Apapa traffic situation amongst others we achieved a topline growth in revenue of N214.30 billion, a 33.0 per cent increase over 2019; a 53 per cent YOY increase in PBT, and 33.2 per cent increase in PAT.
Commenting in the same vein, Coordinator, Independent Shareholders Association, Sir Sunny Nwosu said the management of Dangote Sugar led by Dangote has never let the shareholders down for once “their management style is second to none and that is why the company has been growing steadily.”
He said the way and manner the Company has been executing its BIP projects were also commendable as this will afford the Company opportunity to meet targets within its projected timelines.