Dangote Sugar to pay N7.2bn dividend, expand operations

Dangote Sugar Refinery Plc has received the approval of its shareholders to pay a divided of N7.2bn for 2013 and unveiled plans to boost its production by up to two million tons of sugar per annum. The dividend translates to 60 kobo per share.

The shareholders, who gave the approval for the dividend payment at the company’s 8th Annual General Meeting in Lagos, praised the management for putting strategies in place to tackle the challenges of a tough operating environment.

At the AGM, the Chairman, DSR, Alhaji Aliko Dangote, told shareholders that in line with the Federal Government’s National Sugar Master Plan, the company was implementing a plan to boost its operations.

he said, “This plan is targeted at increasing the production capacity of your company of 1.5 million to 2.0 million tons of sugar per annum from locally grown sugar cane within the next five to 10 years. This will further consolidate our position as the largest sugar producer in West African region.”

Dangote explained that the sugar development plan was carefully designed and would enable to company strengthen its backward integration project.

The Group Managing Director, DSR, Mr. Graham Clark, added, “We have restructured our sugar operations with greater focus on backward integration project. The targeted selection and acquisition of some 200,000 hectares of land across various states in Nigeria for the development of sugar cane plantations and construction of modern sugar processing factories has begun.”

Dangote Sugar had declared a turnover of N102.467bn for the 2013 financial year as against N106.868bn a year earlier. It profit before tax for the year rose to N20.099bn from N16.331bn, while its profit after tax advanced to N13.573bn from N10.796bn within the period.

Dangote, who said 2013 was volatile for the sugar industry explained that the company had to adapt to stay profitable.

“By adapting to the needs of our customers, we sustained our leadership position in the market and grew our profits during the period under review.”

In expanding the company’s operations he said, “We will work to ensure ongoing operational efficiency to drive continued growth across our markets.”

Clarks explained that the company’s business model was sustainable and designed to impact communities where it had operations.

He added “Our targets are clear and a robust framework supported by key performance deliverables will enable us to deliver the expected results in the next five to 10 years with enhanced benefits to all our stakeholders.”