Economic Confidential, April 2008

BUSINESS

Dangote Sugar posts N30 billion profit     

Dangote Sugar Refinery Plc announced a Profit before Tax (PBT) of N30.7 billion for the finan-cial year ended December 31, 2007. It also announced N80.6 billion turnover for the year. The Profit before Tax was achieved from the gross profit of N32.5 billion, an increase of 62% over the N20.1 billion earned in the previous year.

According to a statement from the company, Profit after Tax (PAT) for the year under review grew by 29% against the N16 billion achieved in 2006. This resulted in earnings per share of 215 kobo for the year, against 167 kobo earned in 2006, the statement said.

The company’s Board of Directors has also recommended a final dividend of 50 kobo per share to shareholders, and further proposes a bonus issue of 1 (one) share for every 5 (five) shares held in the company as at the close of business on Thursday, April 27, 2008.

If approved, the total dividend payable to the company’s shareholders for the year ended December 31, 2007, according to the statement, will be 170 kobo, having paid quarterly dividends of 40k per share for the period March, June and September 2007.

The MD/CEO of Dangote Sugar Refinery Plc, Engr. Abdullahi Sule said the outstanding result and significant growth in earnings and profitability was accelerated by allowing consumer needs to drive its growth initiatives. He further stated that the audited result for the year under review attests to the significant improvements in other operational and performance indices, with a focused cash management system that reduced overdrafts and interest payments by the company.

Besides, the DSR Plc helmsman said the Board and management are determined to continue leveraging on the strong fundamentals of the business, particularly the company’s brands as well as the implementation of strategic moves to ensure that the current growth trend and profitability are sustained by the company in the coming years.

According to it, achievements recorded by the company were further attested to at the prestigious Thisday Annual Awards, where DSR beat other contemporaries to emerge winner of the coveted Company of the Year Award, for good governance and excellence and the Global Excellence Awards, where DSR also emerged Company of the Year 2007.

Also, DSR is the current winner of the President’s Merit award of the best quoted company in the Food and Beverage sector, as well as the 2nd best quoted company on the Nigeria Stock Exchange in 2007.

Besides the creation of new markets for its products in sub-Saharan Africa, DSR has finalized arrangements for the introduction of new consumer convenient 1kg, 500g, 250g and other smaller pack sizes of its vitamin A fortified sugar; as well as the expansion of its sugar refining capacity by an additional 1.1 million metric tonnes annual capacity, the statement said.