Dangote Sugar hits N204.42b turnover, N121b on asset acquisition, pays N21b dividend
Leading indigenous sugar firm, the Dangote Sugar Refinery Plc has jumped dividend pay out to shareholders for the 2017 financial year by 192 per cent to N21 billion, translating to 175 kobo per share from N7.2 billion or 60 kobo per share in 2016.
While stressing that the feat is in line with its resolve to deliver decent returns on investments, the Chairman of the company, Alhaji Aliko Dangote, said the company achieved a group turnover of N204.42 billion, showing 20.4 per cent increase over the comparative period of 2016.
In his address, Dangote revealed that “With Profit Before Tax of N53.6 billion, showing 173 per cent increase over the 2016 and profit after tax of N39.7 billion, the board has recommended to shareholders for approval, at this meeting, the payment of a final dividend of N15 billion, being 125 kobo for the year ended December 31,2017.
“The board had earlier approved the payment of an interim dividend of N6 billion, being 50 kobo per share. This brings the total dividends for the year under review to N21 billion,” he said.
Explaining more on ongoing national backward integration scheme on sugar driven by the company, Dangote said the firm has spent N121billion on equipment, land acquisition, compensation to land owners, consultancy and related services.
He said despite the major setbacks caused by flooding, community relations issues and most recently, clashes between host communities and Fulani herdsmen that hampered progress, Savannah Sugar remained the only company producing sugar from own home grown sugarcane in the country with over N30 billion spent to date.
Dangote noted further that “Negotiations with the government and local communities in Kwara and Niger states on land acquisition processes are ongoing, in line with the backward integration sites”.
Earlier, the Acting Managing Director/Chief Executive Officer of Dangote Sugar Refinery Plc, Abdullahi Sule, noted that the company would continue to pursue its target to achieve 1.08 metric tonnes of refined sugar yearly in six years and eventually, 1.5 million metric tonnes in 10 years.
He disclosed that currently, the focus of the company remains to ride on its strengths to maximise every opportunity to generate sales, increase its market share and create sustainable value for all stakeholders.
Sule assured that “Though the business terrain remains very challenging, we remain resilient in the face of the situation and are focused on increasing our market share and customer base as well as the creation of sustainable value for our stakeholders.
