Dangote Sugar profits soar
Strategies by the new Management of Dangote Sugar (DSR) have started to pay off positively as the company’s profits have been on the upswing.
To celebrate the success recorded by the company with its customers, the Management recently approved incentives, worth N341 million in the first three quarters of 2012.
Staffs were not left out of the bounty as DSR promoted 173 staff as well as paid performance bonus totaling N190 million, also for the quarters under review.
A statement from the Company revealed that, in the first quarter, the customers were given incentives worth N109 million, second quarter N115 million and third quarter N117 million.
The staff were paid a total of N62.6 million as performance bonus in the first quarter, N63.7 million in the second quarter and N64 million in the third quarter. Apart from the bonus, shares of the sugar company were allotted to staff that joined the company after the staff share allotment scheme took off in 2007.
The staff share allotment scheme was introduced in 2007 to ensure that employees are also part owners of the company by allotment of free shares to all staff.
Speaking on behalf of the staff, Chairman, Dangote Sugar Refinery Staff Consultative Forum, Mr. Emmanuel Sheidu expressed profound appreciation to the board and management of the company for approving the bonus.
The company’s performance parameters were on the upswing, for the third quarter, with profit before tax rising by N5.53bn – from N6.49bn to N12.01bn.
The company’s profit after tax also soared from N4.41bn to N8.17bn representing a growth of N3.76bn.
During the period under review, the refinery recorded improvements in efficiencies as cost of sales dipped from N69.44bn to N65.96bn, indicating a gain of N3.48bn gain.
It could be recalled that the company had reported a profit after tax of N5.728bn in the second quarter ended June 30, 2012, depicting an increase of 91 per cent above the N2.999bn recorded in the corresponding period of 2011.
The company ended the period with a turnover of N53.698bn, up by 10 per cent from the N48.597bn posted in 2011. Profit before tax rose from N4.41bn to N8.493bn, while profit after tax went up by 91 per cent to hit N5.728bn in 2012.
In the first quarter ended March 31, 2012, the company reported a profit before tax of N4.12bn compared to N2.05bn in the corresponding period in 2011.
Its gross profit rose to N5.34bn in the period in contrast to gross profit of N3.24bn posted in the preceding year, while profit after tax rose to N2.80bn from N1.39bn and revenue grew from N21.54bn to N26.73bn.
The refinery’s performance received a boost with the introduction of Dangote Vitamin A fortified sugar packages in one kilogram, 500 grams and 250 grams packs.
According to the statement, the acceptance of the new packages in the market has been a source of encouragement to the management as it sets out to achieve its goals. The statement added that the management is optimistic that continued implementation of the company’s strategic policies and improved operating efficiencies, high turnover and improved margin are expected before the year runs out.
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