Dangote Set To Earn N13 Billion In Dividends Alone From Sugar

Africa's richest man and Chairman of Dangote Group of companies is set to earn a dividend of 13 billion Naira from his stake in Dangote Sugar Refinery Plc.

The Kano-born businessman holds a direct stake of 653,095,014 units, and an indirect stake of 8,122,446,281 respectively in Dangote Sugar Refinery PLC, at N1.50 per share. 

Dangote Sugar Refinery Plc posted a profit after tax of N29.78bn in 2020, compared to N22.36bn in 2019, according to its audited financial statements.

The group revenue increased by 33 percent to N214.30bn from N161.09bn in 2019, while the gross profit increased by 40.4 percent to N53.75bn from N38.29bn. 

It also recorded an increase of 13.7 percent in production volume to 743,858 tonnes in the financial year which ended December 31, 2020, from 654,071 tonnes in 2019.

It also posted an increase in sales volume, which rose by 6.9 percent from 684,487 tonnes to 731,701 tonnes.

Company Background

Dangote Sugar Refinery is Nigeria’s leading integrated sugar company and a major refiner of raw sugar with a key focus on the production of fortified and non-fortified granulated white sugar.

Its operational activities aside from sugar production include the distribution of refined white sugar to consumers and industrial customers in the country, and also the exportation of its products to other West African countries.

Dangote Sugar Refinery Plc commenced business in March 2000 as the sugar division of Dangote Industries Limited with an initial installed capacity to process 600,000 MT of raw sugar per annum. It is currently the largest sugar refinery in sub-Saharan Africa and the second largest in the world with a consumer market share of about 80% in the Nigerian sugar market.

Billionaire Dangote is the single majority shareholder of his integrated sugar business. He currently has a net worth of over $17 billion and is set to earn more as his companies keep doing well. As of November, one of his business interests, Dangote cement, of which Dangote owns Dangote owns 85%, reported quarterly revenues of 284.6 billion Nigerian nairas, approximately $720 million.

According to Forbes magazine, the cement company produces 45.6 million metric tons of cement every year and operates in 10 African countries.