By Michael Eboh
The management of Dangote Sugar Refinery (DSR) Plc has announced plans to focus on an aggressive growth and expansion of the company in the next couple of months.

Meanwhile, the company will be holding its annual general meeting, tomorrow in Kano.
According to a statement by Chairman of the company, Alhaji Aliko Dangote, its decision to focus on growth and expansion is borne out of its strategy to ensure sustainable growth for the company in all areas of its operations and activities.

He expressed confident that its growth and expansion strategy is realisable, especially with the human and material resources at the disposal of the company.

He said, “Our focus is on continued growth and expansion, this remains our strategy for the achievement of a sustainable growth for our company. We are confident that with our human and material resources, this goal is realisable.

We will continue to set growth targets for ourselves, using best practices in all areas of our operations. Our focus is on breaking new grounds, cost and overhead reduction, increased profitability, delivery of unequaled customer service and value by implementing result-oriented initiatives.

He noted that the economic crisis in the global and local financial landscape led to in its inability to achieve a number of its growth and expansion targets at the stipulated period, noting however, that the company did not relent, especially in its on-going project outside the shores of the country — Dangote Sucreire Algeria SPA.

According to Dangote, other activities are underway to ensure that DSR Plc continue to stay ahead of the pack in our immediate markets.

“The Retail Pack Project,” he said, “It is also on course, despite a few unforeseen challenges we experienced during the year. The decision to package our sugar in small retail pack sizes was borne out of the need and our vision to provide and meet the basic needs of consumers at all times.

“Today, the plant is almost completed. This investment will give our brand more visibility, boost our market share and enhanced value for the company and all stakeholders.

In line with its decision to continually reward its shareholders, the company is recommending a total dividend of N12 billion, representing a dividend of N1.00 each.

The dividend, subject to withholding tax, will be payable to shareholders in the register of members as at close of business on Tuesday July 13, while the dividend would be paid on Friday, July 30, 2010.

The company had in its 2009 financial performance, announced a 2.1 per cent increase in turnover from N80.671 billion in the corresponding period of 2008, to N82.396 billion.

Its profit before tax stood at N19.586 billion, compared with N30.151 billion recorded in the previous year, while its profit after tax closed at N13.186 billion from N21.871 billion reported for the period ended December 31, 2008.
The company said that turnover and profits were curtailed within the period by the 25 per cent depreciation in the value of the naira against the US Dollar.

This, it said, combined with an increase in the price of the company’s major raw material- raw sugar throughout the year; as well as the increase in the price of gas for powering the company’s machines during the period under review.

These attendant costs, the statement added, could however not be entirely passed to the end users, as the “selling price of refined sugar did not fully reflect the increase in the cost of raw sugar, resulting in a reduced margin for DSR Plc.”