By PETER EGWUATU
Dangote Sugar Refinery Plc, a member of the Dangote Group has announced a turnover of N65.22 billion for the third quarter ended
September 30, 2010. According to the unaudited results presented to the Nigerian Stock Exchange(NSE), last week , turnover rose by 9.71 per cent over 59.43 billion recorded in the corresponding period in 2009.
In what has been generally accepted as a difficult operating year for many businesses, the company reported a profit before tax of N12.61billion, compared with the previous N15.86 billion, while profit after tax closed at N9.46 billion, from N11.90 billion reported in 2009.
The performance was attributable to the harsh operating environment experienced by sugar refining factories in emerging markets in 2010.
The company in a statement said “the board of directors is mindful of the challenges posed by the scarcity of and high price of raw sugar in the international market during the period under review, and the attendant impact on performance; the board of directors is hopeful for a change in this situation and performance in the days ahead.”
The Board in the statement assured that processes are being put in place already to improve the company’s revenue stream “through the introduction of more consumer-friendly refined sugar packages into the market.”
Continuing, the directors noted that “the current global economic crisis and the increasing prices of raw sugar amongst others haveposed a major challenge to performance in recent times.
The Board of directors is mindful of its impact on the pastbusiness year; barring these circumstances, the board is hopeful for a better performance in the coming years.”The company also assured that this would be complemented by cost-cutting strategies and innovation to stay ahead of competition, while improving returns on shareholders’ investment.
Towards improving its performance in the current year, the board has made a forecast of N32.90 billion as turnover in the first quarter of 2011 while gross profit is expected to hit N7.64 billion. According to the forecast, profit after tax is projected at N6.19 billion while profit after tax will hit N4.21 billion.