By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-Dangote Sugar Refinery Plc (Dangsugar) Monday proposed to offer investors of the Company a 30 Kobo dividend for the 2011 Financial Year End (FYE).

This was contained in the Result Announcement for the Audited Year Ended December 31 2011 of the Sugar Refinery Company made available to the Nigerian Stock exchange (NSE) and obtained by www.investadvocateng.com 2011 in Lagos Nigeria.

Dangote Sugar said in its Corporate Action to the Exchange that Qualification Date for its Shareholders is May 02 2012 and Closure Date of Register investors whose names appear on the their record is between May 03 and May 04 2012; while payment date has been scheduled for May 18 2012; after its Annual General Meeting (AGM) to be held on May 17 2012 in Lagos.

A review of the Profit and Loss information made available to the NSE, shows that Profit After Tax (PAT) of Dangote Sugar declined from N11.282 billion in year 2010 end compared to N7.111 billion in the Audited Report of year 2011; showing a decline of -37.0 percent (-37.0%).

While Profit Before Tax (PBT) also dipped from N16.146 billion in year 2010 compared to N10.553 billion in year 2011 end; representing a dip of -34.6% in the review period.

However, Turnover increased by 18.4% as Dangote Sugar recorded N106.510 billion in year 2011 compared to N89.980 billion in year 2010 end.

Analyst at Afrinvest West Africa in its Research Note said on the contrary, Turnover fell Quarter-on-Quarter (Q-o-Q) by 13.2%, from N31.0 billion in Q3 2011 to N26.9 billion, while Pre and Post-Tax Profits spiked by 95.5% and 93.4% to N4.1 billion and N2.7 billion respectively.

“We believe this is largely attributable to the decrease in global sugar prices in Q4 2011. PBT and post-tax margins however dropped by 804bps and 586bps to 9.9% and 6.7% respectively” the Afrinvest Research Note said.

Further to this, the Afrinvest Analyst said based on current results, Dangote Sugar trades at a trailing P/E of 6.1x, a significant discount to its peer average of 13.0x, based on its 2011 EPS of N0.59 and Current Market Price of N3.64 as at April 16, 2012.

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