Nigeria: Dangote Sugar Full-Year Revenue Jumps By N53bn As Lagos Contributes Half of Total Sales

Revenue drew strength from the performance of its flagship brand, the 50kg sugar.

Dangote Sugar Refinery (DSR) said its gross sales for 2020 accelerated by one third or N53.211 billion to N214.298 billion, with Nigeria's commercial capital Lagos contributing 49 per cent of its total sales in Africa's biggest economy.

Revenue drew strength from the performance of its flagship brand, the 50kg sugar, which accounted for N206.444 billion or at least 96 per cent of its share of the sugar market, DSR audited earnings report obtained by PREMIUM TIMES showed Tuesday.

Last July, sub-Saharan Africa's biggest maker of the sweetener added stepped up its expansion drive through a merger with Adamawa-based Savannah Sugar, bringing milling capacity up by 50,000 tonnes and per annum installed capacity to 1.44 metric tonnes.

Pre-tax profit rose 53 per cent to N45.622 billion from N29.820 billion, according to the document retrieved from the Nigerian Stock Exchange website.

Profit for the year climbed one third from N22.361 billion to N29.775 billion.

However, earnings were limited by a spike in the cost of sales by 31 per cent from N122.801 billion to N160.552 billion the same way a 112 per cent leap in taxation, on the account of carrying forward deferred tax, also capped gains.

The shareholders fund of DSR swelled from N108.136 billion to N124.712 billion, seeing a 15 per cent increase.

DSR, in which Africa's richest man Aliko Dangote and his Dangote Industries Limited hold 5.38 per cent and 66.87 per cent stakes respectively, outperformed the Nigerian food industry, which returned 31.5 per cent over the past year, according to Sydney-based Simply Wall Street.

DSR shares are up by 2.35 per cent at N18.3 per share in Lagos at 12:01 WAT on Tuesday.

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