Dangote Sugar declares N3.6 billion dividend for 2011
LAGOS-Dangote Sugar Refinery Plc (DSR)has concluded plans to pay out N3.6billion as divided to its shareholders for the business year ended December 31, 2011 just as the management assured of continuous improvement in its performance in view of the new investments undertaken by the organization.
Despite the inclement operating environment, the management, in a statement made available to Vanguard on Tuesday, stated that the company was able to weather the storm to record the profit owning to sound management and proactive decisions in response to the prevailing situation in the sugar sub-sector. In the same vein, DSR posted a turnover of N106.510, 507 billion turnover, for the year while it recorded a Profit Before Taxation (PBT) of N10.6billion, and a Profit After Tax (PAT) of N7.1 billion.
The company announced on Tuesday that the dividend payout amounts to the sum of 30kobo per share for every ordinary share of 50 kobo each, held in the company by members as at May 2nd 2012. The modest performance for the year under review, the management noted, was in spite of the economic crisis, low interest rates and increasing price of raw sugar.
However, it stated that the selling price of Refined Sugar did not fully reflect the increase in the cost of Raw Sugar as doing so would push the price of the refined product too high for the consumers. “The Board and Management are mindful of these challenges; and are focused on value driven innovation and efficient cost optimization. The sales and marketing strategies have been realigned to position DSR strategically to stay above competition, with a view to drive performance; improve efficiency and output.
These efforts are yielding positive results, and have reflected in our first quarter 2012 performance.” To sustain this trend, and deliver the desired financial performance and value for shareholders and all other stakeholders, in the current year and beyond; DSR said investments are being made on its plant to ensure improved maintenance routines and optimal capacity utilization, as well as and meet the ever-changing consumer needs.
The management further said; “Our priority is to grow our markets both locally and international. Arrangements are currently underway to expand our export horizon beyond Ghana; today we are prospecting other countries across the West African coast.
We are also in the process of restructuring our distributorship especially for the retail products.” In addition, DSR management disclosed that the Company was in the process of improving its earnings with the proposed acquisition of savannah Sugar Company Limited to boost its margin. The acquisition is being proposed for the Shareholders approval.