BY CHINYERE OBIORA, LAGOS – Dangote Sugar Refinery (DSR) has recorded an impressive revenue figure of N59.53 billion in the first quarter of the financial year ended March 31, 2017.
The results showed an 83 per cent revenue increase compared to the sum of N32.6 billion reported in the corresponding period last year.
However, the company admitted that the cost of sales grew by 100 per cent due to increase in prices of gas and packaging materials.
According to the breakdown contained in the company’s first quarter result released recently, the gross profit went up by 16 per cent from N6.77 billion recorded last year to N7.84 billion while profit before tax surged by 28 per cent to N7.04 billion from N5.11 posted in year 2015.
Addressing stockbrokers at the facts-behind-the-figure session in Lagos, Acting Managing Director of Dangote Sugar Refinery, Engineer Abdullahi Sule said the company’s 10-year master plan has a target of producing 1.5 million metric tons of refined sugar annually from locally sourced raw material.
Sule said Dangote Sugar is also projecting to establish five large sugar factories as well as produce 130 million litres of ethanol potential across all sites in the country within this 10-year period.
According to him, the company also expects to produce animal feeds and surplus power generation capacity to source from cane fiber in addition to generating over 100,000 jobs in the process.
The DSR boss gave kudos to the Nigerian Sugar Master Plan (NSMP) introduced in 2012 which projected a production of about 1.7 million metric tons of sugar by 2020 from locally grown sugar cane as well as eradicating price shocks that may cause food inflation and consumer end user dissection in the polity.
He further applauded the NSMP for discouraging importation of raw and cube/pack sugar while encouraging laconic participation by stakeholders, noting that it is the way for the country to go towards achieving self-sufficiency in sugar production by year 2020.