Dangote Sugar Plc, a subsidiary of Dangote Industries has declared revenue of N131.95 billion in the half-year period of 2021, reflecting a growth of 27.82% compared to N103.23 billion recorded in the same period of 2020.
This is according to the company’s latest financial statements for the second quarter of 2021.
Similarly, the financial report, revealed that net income increased by N1.03 billion, reflecting a growth of 8.89% from N11.58 billion recorded in the corresponding period of 2020 to N12.61 billion in the current period.
The company generates its revenue through the sale of sugar, molasses and freight income. The notes to account further revealed that the sale of sugar constitutes the majority of revenue recorded during the period while freight income generated the least income for the company.
Furthermore, the company’s management was able to cut down certain expense line items such as depreciation, management expenses, direct labour costs and overhead, and selling and distribution expenses for the period.
However, raw material costs increased from N61.58 billion to N83.77 billion year on year.
More than 10% of total sales made during the period were from Nigerian Bottling Company and Seven-Up Bottling Company Limited. These companies purchased industrial non-fortified sugar from Dangote Sugar Plc. Meanwhile, 35% of sales made during the period were to industrial users such as manufacturers of confectioneries and soft drinks.