Dangote Sugar refinery managed to remain profitable in the 6 months’ period to June 2021, even as cost of sales surged by 25.4 percent in the period.
The largest maker of the sweetener in Nigeria reported gross profits of N28.59 billion on revenues of N131.95 billion in June 2021, compared to gross profits of N20.82 billion on revenues of N103.24 billion in June 2020.
Cost of sales rose to N103.36 billion for the period, compared to N82.41 billion in the earlier 2020 period, largely as a result of the higher cost of raw materials (imported Sugar) which rose to N83.77 billion in the June 2021 period from N61.57 billion in June 2020.
The Dangote Sugar Group sells unfortified sugar mainly to pharmaceutical, food and beverage manufacturers, while Vitamin A-fortified sugar is sold to distributors who sell to small wholesalers, confectioners and other smaller value-adding enterprises who provide the distribution network to the Nigerian retail market.
The Group sells a small amount of sugar directly to retail customers.
Retail packaging comes in various sizes of 250g, 500g, and 1kg under the brand name “Dangote Sugar”. Sales to distributors account for 65 percent of the Group’s revenue.
The Group has 4 reportable segments based on location of the principal operations as follows: Northern Nigeria, Western Nigeria, Eastern Nigeria and Lagos.
Lagos remained the major sales market for the Group with revenues from Nigeria’s commercial capital equivalent to N60.56 billion for the period. This was followed by Northern Nigeria with N52.41 billion, Western Nigeria at N13.36 billion and Eastern Nigeria at N5.59 billion.
Dangote Sugar Refinery Plc was incorporated as a Public Limited Liability company on 4 January 2005, commenced operation on 1 January 2006 and became quoted on the Nigerian Stock Exchange in March 2007.
Its current shareholding is 68 percent owned by Dangote Industries Limited and 32 percent by the Nigerian public.
The principal activity of the Group is the refining of raw sugar into edible sugar and the selling of refined sugar. The Group’s products are sold through distributors across the country.