Dangote Sugar Refinery Reports N12.6bn PAT in Q2 2021 Results

Dangote Sugar Refinery PLC, Nigeria’s largest sugar producer, announces unaudited group results for the half-year ended 30 June 2021. Dangote Sugar group revenue increased 27.8% year on year to N131.95 billion (2020: N103.23 billion) in the first half of the year on the heels of a very strong growth trajectory recorded in Q1.

Gross profit grew double-digit at 37.3% year on year to N28.59 billion (2020: N20.82 billion) due to better topline performance while Gross Margin expanded 740bps to 21.7% (2020: 20.2%).

EBITDA increased 20.8% year on year to N27.57 billion (2020: N22.82 billion) due to increased earnings, however, EBITDA margin contracted 540bps to 20.9% (2020: 22.1%). Group profit after taxation increased 8.9% year on year to N12.61 billion (2020: N11.58 billion).

Dangote Sugar Refinery sales volume increased 1.5% year on year to 388,589 tonnes (2020: 382,917 tonnes). H1 growth was impacted by a contraction witnessed in Q2 as the market responded to macroeconomic changes. Group production volume also increased 7.6% year on year to 403,846 tonnes (2020: 375,276 tonnes) on the back of the operations optimization drive. The challenges with the Apapa traffic gridlock situation have however continued to persist.

Commenting on the Company’s half-year 2021 performance, the Group Managing Director/CEO, Ravindra Singhvi said:

We commenced the year on a strong footing with an impressive performance in the first half as the financial results have shown, with a stronger Q1 topline growth and a robust Q2 topline growth year on year.

During the period under review we launched our new packaging designs for the 50kg fortified and non-fortified sugar bags theme “Dangote Sugar has a New look….Same Great Quality”. The theme reaffirms the quality of our product and inspires a deeper connection to the Dangote Sugar brand among our valued customers and consumers, whilst refreshing our market presence as the leading sugar brand in Nigeria.

As part of our Supply Chain Management Sustainability journey, we continued to enhance our Outgrower Scheme. The technical and agriculture support provided for them over time has led to the improved yield from our Outgrowers sugarcane farms at the Numan Sugar Estate. This effort will be sustained to ensure the socio-economic growth of our immediate communities and improved the sugar cane supply for production.

The team is committed to navigating the second half of the year, keeping the health and safety of our people and partners as a top priority. Our Refinery in Apapa and Backward Integration Operations in Numan, Adamawa State and Tunga, Nasarawa State continue to operate in compliance with our health and safety protocols while ensuring our commitment to the environment and sustainable business practices are maintained.

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The recurrent challenges with Apapa traffic gridlock persisted during the 1st half of the year. We are however optimistic that the truck call up system will address the
situation.

Achievement of the Dangote Sugar Backwards Integration Projects targets remains our focus. We are resolute and will continue in our quest to put Nigeria on the path of sugar self-sufficiency and on the world sugar map.

Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with a 1.44M MT refining capacity at the same location. Refinery located at Apapa Wharf Ports Complex, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.