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Dangote Sugar Shareholders approve N6bn dividend

Shareholders of Dangote Sugar have approved a total cash dividend payout of N6 billion for the 2015 business year representing 48 percent of the company’s profit after tax for the year ended December 31 2015.

This translates to a dividend of 50 kobo per share for every 50 kobo each held in the company.

The shareholders gave the approval in Lagos, on Wednesday at the company’s Annual General Meeting (AGM).

They also applauded the management of Dangote Sugar on its stance for improved efficiency and a 25 percent increase in dividend from 40 kobo declared in the previous year to 50 kobo for the 2015 financial year.

Notable shareholder activists Mr. Boniface Okezie who spoke at the meeting said “We have been rewarded handsomely this year with a higher dividend from last year, compared to other companies which declare a lower dividend to its shareholders in spite of the harsh economic environment. We commend them for the higher dividend paid and hope that next year will be better.”

He also urged the government to look into the challenges of infrastructure so that the manufacturing company’s can save cost and improve profits.

The 2015 financial year showed that the company’s total turnover rose by 7 percent from N94.86 billion in 2014 to N101.06 billion. Gross profit also improved from N18.63 billion to N20.73 billion. Operating Profit increased to N15.85 billion in 2015 as against N13.59 billion in 2014.

Also, the company recorded a profit before tax of N16.55 billion in 2015, representing an increase of eight per cent on N15.27 billion recorded in 2014. After taxes, net profit however dropped marginally from N11.64 billion to N11.54 billion. Earnings per share followed the trend, dropping slightly from 97 kobo in 2014 to 96 kobo. Total assets rose to N102.62 billion in 2015 as against N92.80 billion in 2014.

The highlights of the company’s operations in 2015 showed that season sugar production at Savannah was 6,610 tonnes, up from 6,333 tonnes in 2014. The full year refinery production at Apapa stood at 740,350 tonnes, down from 832,660 tonnes the previous year. Group sugar sales improved from 781,319 tonnes in 2014 to 782,120 in 2015. The company added 100 trucks to the fleet under its management.

Chairman of Dangote Sugar Plc., Alhaji Aliko Dangote, said that the company is confident in it helping Nigeria reach its near-term goal of sugar self-sufficiency by achieving its target of 1.5 million metric tonnes of refined sugar from locally grown sugar cane in the next ten years.

“At the Apapa refinery, our focus is on improving efficiency, energy savings, product quality, and satisfaction of our customer needs. This can be seen through the various awards our company garnered through the year. We have just been awarded the Food Safety Systems (FSSC 22000) Certification, a fully recognized standard by the Global Food Safety Inititative (GSFI), awarded by SGS, a world leading Food Safety certification and standards organization.” He explained.

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