Dangote Sugar Refinery doubles financial results in Q3 2022 compared to a year ago

The largest sugar refinery in Nigeria, Dangote Sugar Refinery Plc, recently reported revenue of N102.863 billion for the third quarter of 2022, up 61.87% from N63.548 billion in the third quarter of 2021.

Its bottom line, which includes profit before tax, increased to N6.537 billion as a result of the company's significant top-line development. Likewise, the period's profit after tax was N4.590 billion.

As a result, operational profit increased by 206.64% year over year to N15.755 billion from N5.138 billion in Q3 2022.

The increase in interest income from bank deposits, which increased to N1.737 billion from N343.152 million also boosted the bottom line profit.

Due to the increasing price of raw materials, the cost of sales increased by 52.60%.

PBT increased by N2.184 billion or 50.17% compared to N4.353 billion in the same period a year ago, while profit after tax (PAT) increased by N1.682 billion or 57.84% to N4.590 billion compared to N2.908 billion in Q3 2021, according to the group's unaudited figures released on the NGX.

Despite double-digit inflation that persisted during the period, the company's financial report demonstrates that the profit is a result of higher sales for the period.

Due to the increase in raw material prices, the cost of sales increased throughout from N55 billion to N84 billion for the quarter, leading the gross profit to increase to N18.6 billion from N8.2 billion a year ago.

However, costs for marketing and distribution as well as administration decreased to corresponding amounts of N188 million and N2.7 billion from N250 million and N2.8 billion, respectively, due to decreases in costs for local travel, legal, consulting, and professional fees, among other things.

Dangote Sugar Refinery has managed to dominate the market, producing 1.5 million tons of refined sugar annually from locally grown sugarcane on its more than 150,000 hectares of land across Nigeria. The company serves both local and international markets-- a top choice for the markets.

The company has revealed its plans to transition from port-based refining to fully integrated sugar production within the country, which will boost shareholder value and enable Nigeria to become self-sufficient in sugar production.

In order to promote the local communities' economic development, Dangote Sugar Refinery has continued to follow its sugar backward integration project plans and improve its Outgrowers Scheme. In addition to achieving the other objectives of its Sugar for Nigeria Project plan, the objective is to create a solid outgrower scheme with roughly 5,000 outgrowers once the initiatives have completely taken off.

Achieving the goals of the Dangote Sugar Backward Integration Projects and putting Nigeria on the road to sugar self-sufficiency and the map of the world are the sugar refiner's main priorities.

With a 1.44M MT refining capacity, the Dangote Sugar Refinery is Nigeria's largest producer of household and commercial sugar. It refines raw sugar into white, Vitamin A-fortified refined granulated white sugar appropriate for use in homes and businesses.