…Posts N441.5billion revenue in 2023 full year

 

Dangote

 

The Backward Integration Policy of the Federal Government on Sugar will soon have a significant impact on Sugar production in Nigeria, as the Management of Dangote Sugar Plc is targeting an annual production of 1.5 million metric tons of sugar from locally grown sugarcane.

Chief Executive Officer of Dangote Sugar, Ravindra Singhvi, made this disclosure when presenting details of the company’s 2023 full-year result to the Nigerian Exchange over the weekend. He said: “In line with the core objective of the National Sugar Master Plan which is for Nigeria to attain self-sufficiency in sugar production, Dangote Sugar is working on enhancing its existing refinery operations in Numan, Adamawa State, as well as developing its greenfield sites at the Nasarawa Sugar Company Project, amongst other sites.  The Company intends to achieve 1.5MT annually from locally grown sugarcane.”

Commenting on the 2023 year-end financial result, Ravindra Singhvi, said “Dangote Sugar achieved commendable results despite difficult operating conditions characterised by rising inflation and strained consumer incomes…”The company announced a 9 percent increase in its group revenue to  N441.5 billion for the year ended December 31, 2023, and a recurring profit after tax, up by 71.5 percent to N97.9 billion.

Speaking on the outlook for the company, the CEO said, “Our focus is to enhance the effectiveness of our supply chain management processes, leading to cost reduction and improved overall efficiency. Longer-term, the backward integration project, which aims to produce 1.5MT of refined sugar annually from locally produced sugarcane, is expected to alleviate some pressure on costs and our demand for foreign currency.”

Singhvi added that the proposed merger between Dangote Sugar, NASCON, and Dangote Rice Limited, marks a significant milestone in the company’s journey. According to him, “This strategic move reflects our commitment to growth and innovation, positioning us to harness future opportunities in the foods industry. We have applied to the Securities and Exchange Commission for the approval of the merger, and we continue to engage the regulators. We are confident that this proposed merger will drive sustainable long-term success and yield greater returns to all our stakeholders.”

He maintained that the company’s commitment remains steadfast, ensuring the delivery of high-quality products to valued customers as it continues to work towards fulfilling Nigeria’s Sugar Master Plan, positioning Nigeria as a self-reliant player in the global sugar industry.

Dangote Sugar Refinery Plc is a leading sugar processor in Nigeria engaged in the refining, distributing, and marketing of granulated sugar to major players in the food and beverage, pharmaceutical, and skin care industries as well as distributors.

With a combined installed refining capacity of 1.49 million tonnes per annum between its Apapa and Numan refineries, the company is a significant player in local sugar production, cultivating 75% of the sugar cane used. Supported by a fleet of over 800 haulage trucks, the company ensures effective product delivery across Nigeria.

Furthermore, upon completion of the ongoing refinery upgrade in Numan, this operation is anticipated to generate 32 megawatts of electricity through the installation of new turbines and 2 high-pressure boilers capable of producing 90 tonnes of steam per hour. Additionally, the company intends to produce ethanol and animal feed from by-products such as molasses and bagasse.