Dangote Sugar Refinery Plc has declared a profit after tax of N4.274bn for the three-month period ended March 31, 2014.
The figure represents a 5.62 per cent increase on the N4.047bn the company posted for the corresponding period of 2013.
The company’s consolidated statement of financial income for the first quarter of 2014, which was posted on the Nigerian Stock Exchange’s website on Thursday, showed that its profit before tax also rose by 5.62 per cent to N6.286bn when compared to the N5.951bn it declared in the same period of 2013.
Also, Dangote Sugar reported a 15.53 per cent rise in its net assets. According to the company, its net assets rose to N58.128bn in the period under review; from N50.316 in the corresponding period of 2013.
However, the company’s revenue depreciated; falling by 6.53 per cent to N25.838bn in the three-month period ended March 31 from the N27.644bn it realised in the same period of 2013.
The Managing Director, DSR, Mr. Graham Clark, had said in March that the company’s numerous investments in strategic processes would lead to increased profitability for its shareholders in the coming months.
Clark, who spoke during a meeting at the Nigerian Stock Exchange, stressed that he would leverage his vast experience in sugar business to increase the company’s business.
He noted that the company’s recent acquisition of farm machinery worth $35m from Panafrican Equipment was in line with the backward integration policy of the Federal Government and the National Sugar Development Council.
“This is yet another milestone in the Dangote Sugar journey as we work towards the achievement of our strategic sugar master plan to produce 1.5 million metric tonnes of sugar per annum, locally,” Clark said.
Clark also explained that the company was embarking on backward integration plan to stimulate sugar production in Nigeria and ultimately make the product sufficient in the market.
He said, “We will increase our capacity significantly; this will enable us to reach our retail market easily. We are bringing agriculture back to rural Nigeria and we have plans to be one of the largest commercial farmers in Africa. Also, we will bring new skills to rural Nigeria and employ many people.
“We want to assure our shareholders that there will be exciting things taking place in the next few years. We see our sugar development story effectively moving from now through a period of five to 10 years, when we will develop new sugar plantations, new sugar factories across the country.”