By Micheal Eboh

Dangote Sugar Plc has announced plans to grow its earnings and bottom line in the years ahead with the introduction of retail packs of it products, making it accessible and affordable to consumers.

Speaking at the company’s Annual General Meeting (AGM), in Abuja, Acting Managing Director of the company, Mr. Sai Prakash expressed optimism on the positive impact the newly introduced retail pack of the product will have on its turnover, profitability and returns to shareholders.

According to him, the decision to introduce the product in retail packs was a deliberate attempt on the part of the directors to make the product more accessible to the people.

This, he said, is part of its plans to adopt series of strategies and innovations to ensure improved returns on investments for its shareholders in the years ahead.

The company’s earning, according to Prakash, will rebound with the introduction of its Vitamins A refined white sugar, in more consumer-friendly packages into the market.

He said, “We will make the product more accessible to the people. This will definitely increase our bottomline and it will also positively affect the shareholders’ returns”

Also speaking, Chairman of the company, Alhaji Aliko Dangote assured shareholders of consistent and good returns on their investment, adding that the retail package product was a dream realised.

He said: “I am happy to announce to you that the new Dangote Refined Vitamin A fortified white granulated sugar will be in the Nigerian market on or before the third quarter of this year. We have scaled the various hurdles that came up in the course of the retail project implementation.

“The necessary machinery is in place to see to the successful introduction of this new pack sizes from your company’s stable.”

Meanwhile, the company for the year ended December 31, 2010, posted a turnover of N89.98 billion and an operating profit of N16 billion.

The harsh operating environment experienced by sugar refining factories in emerging markets notwithstanding, the directors still recommended a dividend of N7.2 billion to the shareholders, translating to 60 kobo per share.

The company’s earning is expected to rebound with the introduction of the products in more consumer-friendly packages into the market.

Speaking in the same vein, Prakash said, “By the third quarter, the retail packaged sugar will not only help the company improve its earnings, but will once again enthrone it as a clear leader in the sugar refining subsector of the Food and Beverages Industry.

“In addition to the focus on the retail market, the company has also introduced a fleet of haulage trucks to ensure prompt lifting and delivery of its products to customers nationwide.

“We are also putting necessary steps in place for the acquisition of vessels to ensure cost effective shipment of our major raw materials input: raw sugar.

“The impact the retail business will have on the company is two folds: It would help improve volume growth, particularly as the wholesale sugar market is increasingly competitive; it would also help strengthen profit margins, which are currently threatened by rising raw sugar price.

This retail business presents the company with a significant opportunity to improve its earnings over the medium term.

“All the strategies put in place are meant to ensure that the company stays ahead of competition and also ensure increased returns for shareholders.”

Dangote sugar refinery started production in December 1999, The refinery was designed and built by Tate & Lyle, UK and the equipment mostly imported from UK and Brazil.

The company’s end-product is refined sugar of a very high quality, and at least of the same quality as the best sugar produced in the international market. It is currently offered to the consumer market in 50 kg bags. Dangote Sugar Refinery Plc is subsidiary of Dangote Group.

Meanwhile, the group’s stocks, despite the bearish runs in the the Nigerian Stock Exchange (NSE) enjoyed high patronage, which lifted their value to N2.16 trillion.

The combined value of Dangote companies listed on the NSE, which include Dangote Cement Plc, Dangote Sugar Refinery Plc, Dangote Flour Mills Plc and National Salt Company of Nigeria Plc (NASCON) went up from N2.151 trillion to close at N2.163 trillion.

By the performance, the Dangote Group accounted for 27.4 per cent of the total value of the equities listed on the NSE as at the end of the first quarter.