L-R: Chairman, Dangote Sugar Refinery Plc, Aliko Dangote; Group Managing Director/CEO, Dangote Sugar Refinery Plc, Ravindra Singhvi, and Non-Executive Director, Dangote Sugar Refinery Plc, Olakunle Alake at the 16th Annual General Meeting of Dangote Sugar Refinery Plc held in Lagos on June 15, 2022
The Federal Government Sugar Backward integration project is the best thing to happened to the sector, Chairman, Dangote Sugar Refinery Plc, Aliko Dangote, said on Wednesday.
Addressing the 16th Annual General Meeting (AGM) of Dangote Sugar Plc, in Lagos, Dangote told shareholders that despite the harsh operating environment during the year, the board and management of the company were not deterred in their pursuit of sustainable growth for the company.
The success story recorded during the year, he said, demonstrated resilience by the management of the company through their continued implementation of strategies towards the corporate objectives during the year.
The dividend pay-out of N12.147 billion for the year, which translates to N1.00 per share was unanimously approved by the shareholders.
A review of the Group turnover of N276 billion, is about 29 percent increase over N214 billion in the comparative year.
Profit before tax of N34.021 billion, profit after tax of N22.052 billion. Group earnings before interest, taxes, depreciation, and amortization dropped to N46.5 billion with an EBITDA margin of 18 percent.
The Company’s performance during the year under review is commendable amidst the challenges and the negative impact of COVID-19 pandemic on economic activities.
“We furthered the implementation of process optimisation, cost savings, and product promotion strategies with the launch of our new brand identity and the pursuit of the Dangote Sugar Backward integration master plan,” he said.
He said the Board and management would continue to implement strategic actions to sustain and surpass the current performance, while engaging with all stakeholders in the sector and its communities to ensure the realisation of the objectives of the Company.
On the company’s backward integration project, Dangote said the goal of the Dangote Sugar Backward Integration Project Master plan remained the achievement of 1.5 million metric tons annual capacity from locally grown sugar cane in support of the quest for sugar sufficiency in the country by the federal government.
The objective, he said, would be achieved in addition to the extended value chain benefits to be derived from the projects, including thousands of jobs that would be generated in the sector.
Despite the challenges faced during the year, Dangote Sugar Numan Operations rehabilitation and expansion efforts of the factory and field, he said, were advancing towards set target.
“The community tissues that came up were effectively managed, and we have continued to advance so far without any major Disruptions to our operations,” the Chairman said.
Besides, he said in 2021 the Company’s commitment to building a sustainable business remained on track with the principles of good corporate governance.
The company, he said, has imbibed best practices in environmental and impact management in the day-to-day running of the business, assuring that its commitment to the achievement of Sugar Backward integration projects remains unwavering, describing it as the future of the industry in Nigeria.
“This will keep us on our sustained growth path, and we will continue to deliver and improve our quality service, while delivering value to all stakeholders,” he said.
The Group Managing Director/Chief Executive officer of Dangote Sugar, Ravindra Singhvi, said the company remained ahead of the pack in implementation of the National Sugar backward Integration Development Master Plan in the country.
Singhvi however said the situation at the Lau/Tau project was still the same, although the company continue to remain hopeful that the Taraba State government would resolve the lingering issues with the communities to allow the company to focus on the development of other brown and green field project sites.
“Steady progress is now being made as we continue the rehabilitation and expansion project at Dangote Sugar, Numan, and development activities at the Nasarawa Sugar Company Limited, Tunga,” he said.
Singhvi stated that the Company remained resolute and committed to ensure a sustainable future for its business, while assuring the shareholders of better days ahead.
On behalf of the shareholders, Bisi Bakare, commended the company for the achievements during the year, particularly with the food fortification award received for the year and the bountiful dividend paid to investors.
Another shareholder, Patrick Ajudua, expressed satisfaction with dividends declared, particularly with the various environmental operating challenges.
He charged the management to improve upon the capacity utilisation of the plant to be better positioned to meet local and export needs.