Despite the disruptions to the economy due to the coronavirus, Dangote Sugar Refinery (DSR) Plc recorded improved results in its 2020 financial year.
Details of the audited results ended December 31, 2020, showed that DSR posted a revenue of N214.297 billion, up by 33 per cent to N161 billion in 2019.
Production volume rose by 13.7 per cent to 743,858 tonnes in 2020, compared to 654,071 tonnes in 2019, while sales increased by 6.9 per cent from 684,487 tonnes to 731,701 tonnes.
Profit after taxation for the year increased by 33.2 per cent to N26.70 billion as against N22.36 billion in 2019. The board of directors recommended a dividend of N1.50 per share, up from N1.10 paid the previous year.
Commenting, the performance, Group Managing Director/Chief Executive Officer of DSR Plc, Mr.
Ravindra Singhvi, said despite the socio-economic uncertainties occasioned by COVID-19 pandemic during the year under review, the sugar group continued on the growth path with commitments to improve on performance and generate value for all stakeholders.
According to him, 2020 was indeed very eventful for the company ranging from the weak macroeconomic fundamentals caused by the underlying impact of COVID-19 pandemic which saw to the steady rise in foreign exchange (FX) rate, high inflation and the significant rise in its cost of production, to the worsening traffic gridlock on the Apapa Wharf road which led to delays and at times disruption of the distribution and deliveries to customers.”
Singhvi said the company activated its Business Continuity Management System (BCMS) during the lock down periods due to the COVID pandemic and disruptions caused by #EndSARS protests, which helped to minimize the adverse impact the situation had on businesses in the country.
He noted that one of the key highlights of during the year was the successful completion of the Scheme of Arrangement – merger of DSR Plc and Savannah Sugar Company Limited (SSCL) with effect from September 1, 2020 to operate under one unified entity.
He said: “We are confident the merger will enable us to achieve operational, administrative and governance efficiencies resulting in increased shareholder value. We will continue to pursue our Backward Integration Projects, and other key initiatives to grow our sales volumes, market share, optimise cost and operational efficiencies.”