According to the company’s result on the bourse, Group revenue surged by 58 per cent to N115.3 billion from N73 billion in 2015. Gross profit increased to N19 billion from N18.7 billion in 2015.
The company’s EBITDA also increased to N18.5 billion 2015 from N17.1 billion. Profit before tax increased to N15.3 billion, while profit after tax increased to N10.1 billion from N9. 3 billion in 2015.
The company stated that production volume for the period went up, saying, “Group Sugar sales volume rose to 614,389 tonnes from 530,725 tonnes in 2015, group production volume stood at 609,235 tones from 530,133 tonnes in 2015.
“Apapa Refinery production volume rose to 596,541 tonnes from 523,693 tonnes, Apapa Refinery sales volume went up from 524.315 tonnes to 601,695 tonnes under the period review, Savannah production up to 12,695 tonnes from 6,440 tonnes in 2015 and Savannah sales volume rose by 12,695 tonnes from 6,440 tonnes.”
Analysts at Cordros Capital said the nine months and third quarter ended September 2016 result shows a robust year-on-year and quarter-on-quarter revenue growth, significant year-on-year and quarter-on-quarter gross margin contraction, high double-digit year-on-year and quarter-on-quarter increase in opex, year-on-year reduction in finance charges.
They noted that the nine months revenue was up by 57.8 per cent while net profit grew by 8.4 per cent, saying the 2015 growth came through a combination of volume (c.10%) and pricing (86.7%), while growth over second quarter, 2016 was strictly on pricing (47.3%).
Dangote Sugar’s management has increased prices in every quarter of this year, with its per tonne price of refined sugar averaging N187,590 vs. N137,640 in nine months 2015.
