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Dangote Sugar declares dividend as profit grows by 132%

NIGERIA - The current earning season for listed company has favoured shareholders of Dangote Sugar Refinery (DSR) Plc as the company has declared an interim dividend of 50 kobo per share for the half year ended June 30, 2017.

The dividend will be paid out of the 285 earnings per share (EPS) recorded for the period to shareholders whose names will appear on the register of the company as at August 11, 2017.

The unaudited results for the 2017 show improved performance indicators. Specifically, DSR recorded a revenue of N118.68 billion in 2017, up by 68 per cent from N 70.47 billion in the corresponding H1 of 2016.

In line with high inflationary trend and general high cost of doing business, the company’s cost of sales rose from N56.5 billion to N91.7 billion. But the company reduced selling and distribution costs, which fell from N488 million to N411 million.

DSR ended the H1 with profit before tax of N25.25 billion, up by 126 per cent from N11.16 billion, while profit after tax jumped by 132 per cent to N17.10 billion, up from N7.38 billion.

EPS per share grew to 287 kobo compared with 123 kobo. Hence, the directors have recommended an interim dividend of 50 kobo per share.

Looking ahead, the acting Managing Director of DRS, Abdullahi Sule said: “The outlook for the remaining quarters of the year remains promising despite the various economic challenges in the country.

Our focus remains increasing our local market share to reinforce Dangote Sugar’s position as Nigeria’s leading producer, and achieving our backward integration sugar production plans, as Nigeria continues in its quest to achieve self-sufficiency.”

“Our greater growth strategy “Sugar for Nigeria” continues to gain momentum; the rehabilitation and expansion of Savannah Sugar is well underway, while the Memorandum of Understanding (MoU) for the 60,000ha Tunga Sugar Project has been signed.

We have continued towards overcoming every challenge we are being faced with in the realisation of our backward integration plans.”

Although investors received a dividend of 60 kobo per share for 2016, the Chairman of DSR, Alhaji Aliko Dangote assured shareholders that the company remained committed to the delivery of superior returns to shareholders.

According to him, the company was in a position to pay a higher dividend but it retained some part of its earnings for investment in the company’s Backward Integration Programme (BIP).

July 30, 2017: This Day