For Dangote Sugar Refinery Plc. (DANGSUGAR), there could not have been a better way to end the 2020 financial year. Revenue was up 33.03% YoY to NGN214.30bn (vs. 2019FY: NGN161.09bn) on the back of improved sugar production volumes (+13.73% YoY to 14.87million bags) and healthy local demand (sales: +6.90% YoY to 14.63million bags) – both of which were underpinned by greater control of the domestic sugar market. This, as well as the hike in product prices following the initial tax increase on raw sugar (from 5% to 10%) which has now been reversed. In the period under review, revenue from the sale of sugar: both 50kg (+34.62%) and retail (+34.56%) and molasses (+52.08%) grew by strong double digits year on year, now accounting for 99.42% of total revenues. Freight income, on the other hand, slowed (-57.04% YoY) to NGN1.24bn (from 2019FY: NGN2.89bn) – most likely due to logistics and distribution challenges occasioned by the coronavirus pandemic and lockdown measures.
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Earnings Update – DANGSUGAR 2020FY
