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Dangote Sugar restates commitment to FG’s backward integration policy

From left: Chairman, Dangote Sugar Refinery Plc, Aliko Dangote; Group Managing Director/CEO, Ravindra Singhvi; and Non-Executive Director, Olakunle Alake, at the General Meeting.

. Rewards shareholders with N12.147bn dividend

Dangote Sugar Refinery Plc has restated its commitment to the achievement of sugar backward integration projects, describing it as the best thing that has happened to the sector.

Speaking to shareholders at the 16th Annual General Meeting (AGM) of Dangote Sugar Plc, in Lagos, its Chairman, Aliko Dangote, said despite the harsh operating environment, the board and management were not deterred in the pursuit of sustainable growth and demonstrated resilience by continued implementation of its strategic objectives during the year 2021.

The dividend pay-out of N12.147 billion for the year was unanimously approved by the shareholders, and represents N1.00 per share.

The Company posted a Group turnover of N276 billion, a 29% increase over N214 billion in the comparative year. Profit before tax was N34.021 billion, profit after tax N22.052 billion. Group EBITDA decreased to N46.5 billion with an EBITDA margin of 18%.

According to Dangote, 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 assured that the Board and Management will continue to implement strategic actions to sustain and surpass this performance while engaging all stakeholders in the sector and its communities to ensure the realisation of the company’s objectives.

In 2021, our commitment to building a sustainable business remained on track with the principles of good corporate governance. We imbibed best practices, environmental and impact management in the day-to-day running of our business.

Backward integration

On the company’s backward integration project, the chairman emphasised that the goal of Dangote Sugar Backward Integration Projects Master Plan remains the achievement of 1.5 million MT annually from locally grown sugar cane in support of the federal government’s quest for sugar sufficiency in the country.

He added that this will be achieved in addition to the extended value chain benefits that will be derived from the projects including thousands of jobs that will be generated in the sector from these projects.

He noted that despite the challenges faced in the year 2021, Dangote Sugar Numan operations rehabilitation and expansion efforts of the factory and field are advancing, saying: “The community issues that came up were effectively managed, and we have continued to advance so far without any major disruptions.”

He added that “In 2021, our commitment to building a sustainable business remained on track with the principles of good corporate governance. We imbibed best practices, environmental and impact management in the day-to-day running of our business.”

He assured of the company’s commitment to the achievement of sugar backward integration projects, which is the future of the industry in Nigeria, saying: “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.”

Also, the Group Managing Director/Chief Executive Officer, Dangote Sugar, Ravindra Singhvi, said: “We remained ahead of the pack in implementation of the National Sugar backward Integration Development Master Plan.”

He however said the situation at the Lau/Tau project remains the same, “we continue to remain hopeful that the Taraba State government will resolve the lingering issues with the communities, while we 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.”

Singhvi said the company remains resolute and committed to ensuring a sustainable future for its business while assuring the shareholders of better days ahead.

Meanwhile the shareholders commended the company’s performance for the year under review. A shareholder, Mrs. Bisi Bakare, commended the company for the food fortification award received for the year under review and the bountiful dividend paid.

Another shareholder, Patrick Ajudua, also expressed satisfaction with the dividend declared particularly at a time like this 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.

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