Dangote Sugar restates commitment to government’s backward integration policy

*Dangote Sugar Refinery Plc discloses it is rewarding shareholders with N12.147billion dividend, as the company’s Chairman assures of commitment to Sugar Backward integration projects for future of Nigeria

Isola Moses | ConsumerConnect

Dangote Sugar Refinery Plc has restated its commitment to the achievement of Sugar Backward integration projects, describing it as the best thing that happened to the sector in Nigeria.

The company in a statement said Aliko Dangote, Chairman of Dangote Sugar, addressing shareholders at the 16th Annual General Meeting (AGM) of Dangote Sugar Plc, in Lagos, said 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 in 2021.

The manufacturing firm also noted the dividend pay-out of N12.147 billion for the year was unanimously approved by the shareholders.

The dividend represents N1.00 per share, according to the company.

The statement further said Dangote Sugar under current review posted a Group turnover of N276 billion, being 29 percent increase over N214 billion in the comparative year.

Profit before tax of N34.021 billion, profit after tax of N22.052 billion. Group EBITDA decreased to N46.5 billion with an EBITDA margin of 18 percent.

According to Dangote, the company’s performance during the year under review is commendable amid the challenges and the negative impact of COVID-19 pandemic on economic activities.

Dangote stated: “We 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.”

The Chairman said that the Board and Management would continue to implement strategic actions to sustain and surpass this performance while engaging with all stakeholders in the sector and its communities to ensure the realisation of the objectives of the company.

As regards the company’s backward integration project, the Chairman emphasised that the goal of Dangote Sugar Backward Integration Projects Master plan remains the achievement of 1.5 million MT annually from locally grown sugar cane in support of the quest for sugar sufficiency in the country by the federal government.

This, he said, will be achieved in addition to the extended value chain benefits that will be derived from the projects including thousands of jobs that will be generated in the sector from these projects.

Dangote as well said despite the challenges faced in the year 2021, Dangote Sugar Numan Operations rehabilitation and expansion efforts of the factory and field are advancing.

“The community tissues that came up were effectively managed, and we have continued to advance so far without any major disruptions. noted he.

“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-today running of our business.”

The Chairman also assured of the company’s commitment to the achievement of Sugar Backward integration projects, which is the future of the industry in Nigeria.

This, he noted, will keep us on our sustained growth path and we will continue to deliver and improve our quality service while delivering value to all stakeholders.

In his remarks, Mr. Ravindra Singhvi, Group Managing Director/Chief Executive Officer (CEO) of Dangote Sugar, Mr. Ravindra Singhvi said that “We remained ahead of the pack in implementation of the National Sugar backward Integration Development Master Plan.”

He, however, said that the situation at the Lau/Tau project is still the same.

Singhvi stated: “We continue to remain hopeful that the Taraba State government will resolve the lingering issues with the communities, while we focus 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.”

The Managing Director/CEO also said that Dangote Sugar remains resolute and committed to ensuring a sustainable future for its business while assuring the shareholders of better days ahead.

In their remarks, the shareholders commended the company’s performance for the year under review.

Mrs. Bisi Bakare, a shareholder, lauded Dangote Sugar for the food fortification award received for the year under review and the bountiful dividend paid.

Another shareholder, Mr Patrick Ajudua, also expressed satisfaction with dividends declared particularly at a time like this with the various environmental operating challenges in the economy.

Ajudua charged the company’s Management to improve upon the capacity utilisation of the plant to be better positioned to meet local and export needs.