Dangote Sugar Refinery records N11.1bn profit in 6 months

Dangote Sugar Refinery, DSR, has announced a profit before tax, PBT, of N11.1 billion for the six months ended June 30 , 2016.

The unaudited results for the period showed that profit before tax rose by 13.3 percent compared to N9.8 billion in the same period in 2015.

In the same vein, the profit after tax, PAT, grew by 17.5 per cent to N7.4 billion from N6.3 billion posted in the corresponding period in 2015, while the Group's revenue increased by 37.86 per cent to N70.5 billion compared to N51.1 billion in 2015, reflecting an increase in sales volumes during the period.

Gross profit increased by 9.57 percent to N13.9 billion in contrast to N12.7 billion despite higher production costs mainly driven by increased LPFO usage and currency devaluation. The unit prices for gas and LPFO were also higher than in the comparative period.

In his reaction, Abdullahi Sule, acting Group Managing Director, DSR, said: 'Despite market challenges experienced in the first quarter and operating challenges in the second quarter of 2015, we were able to grow our revenue compared to the same period in the previous year. Our focus for the remainder of the year is to increase sugar production at reduced conversion cost and improve distribution to match the increasing demand from our customers.'