Dangote Sugar’s annual profit surges by 148%

Dangote Sugar Factory posted strong net profit for 2022, taking earnings to record levels after big jump in sales.

Shares in the company jumped 9.9 percent to N19.35 in Lagos on Friday, a 52-week high after the audit results were released.

Revenue, which accelerated by 46.1 percent to N403.2 billion, was mostly contributed by income from the company’s flagship product – 50kg sugar – which accounted for N97 per N100 made during the year.

The year saw changes in the contribution share of the four regions where Dangote Sugar operates its revenue pool, with northern Nigeria bringing the most revenue to the table, while Lagos, which has been the leader for many years, now occupies the second position. .

The sweetener maker had an operating profit boosted by other income which tripled to N1.4 billion, helped by inventory adjustment variance of N707.1 million.

Expenses in the form of selling and distribution expenses as well as administrative expenses decreased slightly. That slightly eased the pressure on operating profit.

With interest from bank deposits jumping at a higher level than in 2021, finance income rose to N6.4 billion, increasing by 349.5 percent.

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Dangote Sugar, majority owned by Africa’s richest man, Aliko Dangote, currently has an installed capacity of 1.4mt per year, with the Apapa plant being the largest in sub-Saharan Africa in terms of refining capacity.

Profit before tax rose by 141.9 percent at N54.7 billion, while profit for the year advanced to N54.7 billion from N22.1 billion.

The company said it will pay shareholders a dividend of N1.50 per share for the year, a total of N18.2 billion.