Federal Government's Backward Integration Policy Supported By Dangote Sugar Refinery Plc

Dangote Sugar Refinery Plc has expressed its commitment to making backward sugar integration a reality. Company Chairman Aliko Dangote, speaking at Dangote Sugar Plc's 16th Annual General Meeting in Lagos on Wednesday, said it was the best thing that had happened to the sector. He said that despite the harsh operating environment, the board and management have not let themselves be deterred from aiming for sustainable growth for the company and have demonstrated commitment and stability through the continued execution of its strategic goals in fiscal 2021. At the meeting, the dividend payment of N12.147 billion for the year, equivalent to N1 per share, was unanimously approved by shareholders. The company reported group sales of N276 billion, up 29 percent from N214 billion a year earlier. It reported a profit before tax of N34.02 billion and a profit after tax of N22.05 billion. Group EBITDA fell to N46.5 billion with an EBITDA margin of 18 percent.

According to Dangote, the company's performance in the year under review is commendable given the challenges and negative impact of the COVID-19 pandemic on economic activity. "With the launch of our new brand identity and the pursuit of the Dangote Sugar backward integration master plan, we have accelerated the implementation of process improvements, cost savings and product promotion strategies," he said.  He stated that the board and management would continue to take strategic actions to maintain and exceed performance while working with all stakeholders in the industry and its communities to guarantee the achievement of the company's goals.

Referring to the company's backward integration project, Dangote said that the goal of the Dangote Sugar Backward Integration Projects Masterplan remains to achieve 1.5 million MT annually from locally grown sugar cane to support the federal government's pursuit of sufficient sugar supply in the country support. He added that this would be in addition to the expanded value chain benefits that would result from the projects, including thousands of jobs that would be created by these projects in the industry. Despite the challenges in 2021, Dangote Sugar Numan Operations rehabilitation and expansion efforts of the field and factory have progressed.

Source