Dangote Sugar Refinery Plc has reported a 91 per cent appreciation in its profit after tax for the second quarter ended June 30, 2012.

The operating results of the company, which was released on Wednesday, showed that its profit after tax that stood at N2.9bn in the second quarter a year earlier, rose by N2.7bn or 91 per cent to close at N5.7bn in the corresponding period of 2012.

Also, its turnover rose by N5.01bn or 10 per cent from N48.60bn in June 2011, to close at N53.60bn in the year under consideration.

The company’s result also showed that net assets stood at N41.85bn in 2012, representing an increase by 5.4 per cent or N2.13bn compared to N39.71bn recorded in the corresponding period a year earlier.

A statement by the company noted that the improved performance was as a result of the effort of the management of the company, which was aimed at rewarding shareholders as well as giving them increased value for their investment.

The company had recently paid its shareholders a dividend of 30 kobo per share for the financial year ended December 31, 2012.

The Managing Director of the company, Mr. Abdullahi Sule, had then explained that the clear vision of the company was to grow local and international markets.

He added that company had plans to expand its export horizon beyond Ghana to other African countries.

“We are prospecting other countries across the West African Coast. Efforts are in top gear to ensure the refinery expansion projects and the proposed acquisition of Savannah Sugar as part of our backward integration projects are completed this year,” he stated.

The President, Dangote Group, Alhaji Aliko Dangote, was quoted as describing the company as the market leader in the Nigerian sugar industry, with about 70 per cent market share and the largest sugar refinery in sub-Sahara Africa. According to him, the company has installed sugar refining capacity of 1.44million metric tonnes per annum.

According him, DSR’s raw sugar importation and refining business has, however, experienced a declining profitability margin “due to volatile raw sugar prices in the global market and increasing competition in the local market.”

He said as part of strategies to retain its market leadership and dominant position, the company had been working on a number backward integration strategies in the area of domestic sugar production and milling business.

He said, “The new strategy is in support of the Federal Government transformation agenda and it is ahead of the proposed sugar policy with the thrust of encouraging local production of sugar.

“The strategy will significantly reduce the company’s cost structure, while ensuring that it remains competitive and delivers improved profitability and enhanced shareholder value.”

Dangote also said that Savannah Sugar Company Plc, located in Numan, Adamawa State, presented a good investment opportunity in that there would be massive creation of employment, power generation, animal feeds production and ethanol, among others.

Source: Punch/Udeme Ekwere