Dangote restates commitment to 1.5MT year sugar production
…As shareholders gave nod to N12.1b total dividend
Dangote Sugar Refinery Plc has assured that the company was poised to achieve 1.5 million Metric Tonnes (MT) yearly from locally-grown sugarcane to increase shareholders’ value and in support of the quest for sugar sufficiency in the country by the federal government.
At the company’s 16th yearly general meeting held in Lagos, yesterday, the chairman of the company, Aliko Dangote, said that despite the harsh operating environment, the board and management were not deterred in the pursuit of sustainable growth for the company and demonstrated resilience by continued implementation of its strategic objectives during the year, 2021.
Also at the meeting, the company’s shareholders approved a total dividend of N12.147 billion, culminating to N1.00 per share due to every investor of the firm for the 2021 financial year.
According to Dangote, the company under review posted a group turnover of N276 billion, representing a 29 per cent increase over N214 billion achieved in the corresponding period in 2020.
He said Profit before tax also rose to N34.021 billion, from N22.052 billion recorded in 2020.
He pointed out that the firm 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.
Dangote said the management would continue to implement strategic actions to sustain and surpass this performance while engaging with all stakeholders in the sector and our communities to ensure the realisation of the objectives of the company.
He added that the sugar sufficiency would be achieved in addition to the extended value chain benefits that will be derived from the projects, which include massive job creation.
He pointed out that in spite of the challenges faced in the year 2021, Dangote Sugar Numan Operations rehabilitation and expansion efforts of the factory and field are advancing.
“The community issues that came up were effectively managed, and we have continued to advance so far without any major disruptions. 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 said the Sugar Backward integration projects would keep the company on a sustained growth path, adding that the firm will continue to deliver and improve on the quality of service, while delivering value to all stakeholders.
The Group managing director/chief executive officer, Ravindra Singhvi said: “We remained ahead of the pack in implementation of the National Sugar backward Integration Development Master Plan.”
He however noted that the situation at the Lau/Tau project is still the same, while expressing the hope that the Taraba State government will resolve the lingering issues with the communities, even while the company focuses 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 stated the company remains resolute and committed towards ensuring a sustainable future for its business with the sugar master plan.
The shareholders commended the company 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.
Another shareholder, Patrick Ajudua, expressed satisfaction on the dividend declared amid a harsh operating environment.
He charged the management to improve on the capacity utilisation of the plant to be well positioned to meet local and export needs.