Dangote Sugar posts N11.3bn profit in Q3
Dangote Sugar Refinery (DSR) Plc grew its profit by 38 per cent for the nine months ended September 30, 2013.
DSR posted a in profit after tax (PAT) of N11.3 billion in 2013, up from N8.2 billion in the corresponding period of 2012.
Though the sugar refining firm recorded had a five per cent decline in revenue, it was helped to an impressive profit return by an increase in investment income and other incomes..
According to the resulted of the company announced at the Nigerian Stock Exchange on Monday, revenue came in at N77.23 billion, compared with N81.311 billion in 2012.
Investment income soared from N748 million to N1.414 billion, while other income followed a higher growth pattern from, rising from N94 million in 2012 to N1.809 billion in 2013. After providing for tax, administrative and other expenses, the company ended the nine months with a PAT of N11.3 billion. Besides, DSR reported a 23.2 per cent rise in its net assets, which grew from N41.846 billion to N51.572 billion. A further analysis of the company's revenue showed that the bulk of its revenue was generated from the sale of sugar in 50kg bags, which accounted for N76.74 billion. A total of N412 million was realised from the sale of retail sugar while molasses accounted for N72 million.
Addressing shareholders of the company last May, the Chairman of DSR, Alhaji Aliko Dangote, said the acquisition of Savannah Sugar Company (SCC) in Numa, Adamawa State, had positioned the company to operate sugar refineries in Nigeria. 'Our target is to achieve local production of 1.5 million metric tonnes of raw sugar per annum by year 2018 harvest season. In addition to SCC, other sites will be acquired and the necessary steps taken to ensure that our foray in backward integration project becomes a good part of our success story,' Dangote said.
Meanwhile, the market was bearish yesterday as the Nigerian Stock Exchange All-Share Index (ASI) fell by 0.49 per cent to close at 37, 278.34, while market capitalisation shed N57 billion to close lower at N11.912 trillion. Thirty stocks lost value compared with 22 that added value.