DANGOTE Sugar has posted a
21.33 percent increase in its halfyear
pretax profit to N9.84 billion,
compared with N8.11 billion same
period last year.
Turnover at the sugar refiner
jumped to N55.03 billion during the
period, compared with N53.6 billion
a year ago, it said in a filing to the
Nigerian Stock Exchange.
According to the audited results
made available on the floor of the
Nigerian Stock Exchange (NSE),
DSR ended 2012 with a revenue of
N106.868 billion, a marginal decline
from N107.2 billion recorded in
2011.
Profit before tax stood at N16.3
billion, up from N10.9 billion in
2011. Similarly, profit after tax rose
by 45 per cent from N7.403 billion in
2011 to N10.769 billion in 2012.
Based on the results, the board
recommended a dividend of 50 kobo
per share, to be paid on May 14 to
shareholders whose names will be on
the company’s register as at April 24,
2013.
Reacting to the DSR performance,
analysts at FBN Capital said the
company would witness a growth
in profit margin going forward as
a result of backward integration
strategy that led to the acquisition
of Savannah Sugar Company (SSC)
Limited last year.
They said: “DSR could see its gross
margins expand in the medium
to long term as a result of this
transaction, particularly as access
to domestic raw sugar substantially
alleviates the negative impacts of
higher tariffs (import tariff for
imported raw sugar was increased
from five per cent to 60 per cent at
the start of the year) and
