Sugar subsidiary plan 106bn investments for the next 4 years

shakirudeen taiwo

May 1, 2017 12:07 PM

The company hopes to stay profitable through its business backward integration programme, which will reduce its exposure to external factors and shock.

Chairman, Dangote Sugar Plc, Aliko Dangote, during one of the company's AGM.

The Chairman of Dangote Sugar Refinery (DSR) Plc, Alhaji Aliko Dangote, has revealed the company’s plan to invest up to N106bn to shore up its operation for the next four years.

This revelation was made during the company’s 11th Annual General Meeting (AGM), held in Lagos on Sunday, April 30, 2017. He explained that about N101 billion has been expended on towards actualisation of the company’s Backward Integration Projects, BIP.

“During the year under review, we continued our backward integration targets. This, unfortunately, has been challenges. Despite these hurdles, the Board is resolute and is even more determined towards achievement of our target to produce 1.5 million tonnes of refined sugar from locally grown sugar cane in the next six years. We are confident that this ambitious goal is achievable, and we will leave no stone unturned in seeing that it becomes a reality,” he said.

Reviewing financial performance of the company, the business tycoon, Ahaji Dangote noted that the 2016 results reflect the outcomes of the various strategic initiatives being implemented over the years to ensure the company sustains its impressive performance in the face of the challenge business environment in the country.

The results showed that Dangote Sugar achieved a turnover of N169 billion, which is 68 per cent higher than previous year, while the profit before tax, PBT, stood at N19.6 billion.

The company’s shareholders at the meeting approved the distribution of N7.9 billion dividend amounting to 60 Kobo per share earlier recommended by the Board of Directors.

shakirudeen taiwo