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Dangote Sugar increase production by 13.7% despite pandemic

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DANGOTE SUGAR

 

 

Despite the disruptions to the economy, owning majorly to coronavirus pandemic, Dangote Sugar Refinery recorded an increase in production volume which rose by 13.7 percent to 743,858 tonnes in the financial year ended December 31, 2020, compared to 654,071 tonnes in 2019.

The sugar group also posted an increase in sales volume which rose by 6.9 percent, from 684,487 tonnes to 731,701 tonnes.

According to the audited result released on the floor of the Nigerian Stock Exchange, the improvements were attributable to operations optimization strategy despite the momentary disruption caused by civil unrest in last quarter of the year. Growth continued to benefit from the sustained efforts to drive customer base expansion and several trade initiatives and investments.

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A breakdown of the results indicated that Group revenue increased by 33 percent to N214.30 billion in contrast to N161.09 billion in 2019. Gross profit increased by 40.4 percent to N53.75 billion, compared to N38.29 billion in 2019 while Group profit after taxation for the year increased by 33.2 percent to N26.70 billion as against N22.36 billion in 2019, reflecting management’s unrelenting goal to deliver consistent shareholder value.

The Group Managing Director/Chief Executive Officer of Dangote Sugar Refinery Plc, Mr. Ravindra Singhvi, speaking on the results said that despite the socio-economic uncertainties occasioned by COVID-19 pandemic during the year under review, the sugar group continued on the growth path with commitments to improve o performance and generate value for all stakeholders.

This was reflected in the sales volume delivery of 731,701 tonnes, and production of 743,858 tonnes being 6.9% and 13.7% increase in volumes over the comparative year 2019.

According to him, “our focus on the implementation of our key strategies in the face of the several challenges posed by the COVID Pandemic, the peculiarities of the Apapa traffic situation amongst others we achieved a topline growth in revenue of N214.30 billion, a 33.0% increase over 2019; a 53% YOY increase in PBT, and 33.2% increase in PAT.

2020 was indeed very eventful for our company ranging from the weak macroeconomic fundamentals caused by the underlying impact of the COVID-19 pandemic which saw to the steady rise in FX rate, high inflation and the significant rise in our cost of production, to the worsening traffic gridlock on the Apapa Wharf road which led to delays and at times disruption of the distribution and deliveries to customers.”

Mr. Singhvi added that the company activated its Business Continuity Management System (BCMS) during the lockdown periods due to the COVID pandemic and disruptions caused by EndSARS protests, which helped to minimize the adverse impact the situation had on businesses in the country.

He noted that one of the key highlights of during the year was the successful completion of the Scheme of Arrangement – merger of Dangote Sugar Refinery Plc (DSR) and Savannah Sugar Company Limited (SSCL) with effect from September 1, 2020 to operate under one unified entity.

He added, “We are confident the merger will enable us to achieve operational, administrative and governance efficiencies resulting in increased shareholder value. We will continue to pursue our Backward Integration Projects, and other key initiatives to grow our sales volumes, market share, optimize cost and operational efficiencies.

Dangote Sugar Refinery is Nigeria’s largest producer of household and commercial sugar with 1.44M MT refining capacity at the same location. Our refinery located at Apapa Wharf Ports Complex, refines raw sugar imported from Brazil to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.

Our Backward Integration goal is to become a global force in sugar production, by producing 1.5M MT/PA of refined sugar from locally grown sugar cane for the domestic and export markets.

To achieve this, Dangote Sugar Refinery Plc acquired Savannah Sugar Company Limited, located in Numan, Adamawa State in December 2012, and embarked on the ongoing rehabilitation of its facilities and expansion of its 32,000 hectares’ sugarcane estate. In September 2020, the scheme of merger between DSR and Savannah Sugar estate was completed which gave birth to a bigger and stronger business with considerable opportunity for growth and delivery of superior benefits to all stakeholders. The expansion and rehabilitation of the sugar estate is still ongoing as well as the development of the greenfield site acquired at Tunga, Nasarawa State for the achievement of DSR’s sugar for Nigeria development master plan.

The Nasarawa Sugar Company Limited, is the registered subsidiary of Dangote Sugar Refinery Plc. The 78,136 hectares Sugar Project Site is located at Tunga, Awe Local Government Area, of Nasarawa State. Massive developments in agriculture, irrigation infrastructure amongst others is ongoing at the site. Unfortunately, Lau/Tau project is still on hold following the lingering compensation issue between the communities and Taraba state government.

 

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ASR Africa launches N250M sports complex project at Uni Jos Campus

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Asile Abel, Jos

The Abdul Samad Rabiu Africa Initiative (ASR Africa), the philanthropic initiative of the Chairman of BUA Group, Abdul Samad Rabiu, has kicked off the construction of the N250 million sport complex for the University of Jos.

ASR Africa is the brainchild of African Industrialist, Philanthropist and Chairman of BUA Group, Abdul Samad Rabiu, the Abdul Samad Rabiu Africa Initiative (ASR Africa) was established in 2021 to provide sustainable, impact-based, homegrown solutions to developmental issues affecting Health, Education and Social Development within Africa.

The sporting facility which is sited at the Naraguta Campus of the university, is set to consolidate the preparedness of the university in hosting the Nigerian Universities Games Association (NUGA).

The facility will feature a 300-seater spectator stand, changing rooms, a lawn tennis court, and a basketball court.
Speaking at the event, the Vice Chancellor of the University, Prof. Tanko Ishaya, praised the Chairman of ASR Africa, Abdul Samad Rabiu for the critical facility intervention.

He mentioned that at the time of the institution’s nomination by ASR Africa for this laudable project, the university management was concerned about sourcing for funds to meet up with its nomination as the host university for the NUGA games. He added that with the ASR Africa TEGS grant, the university is positioned to host more games during the tournament.

The Vice Chancellor noted that the university signed a memorandum of understanding with the International Sports University in South Korea to develop a comprehensive sports programme to harness the talents that abound across the country in the various fields of sports and “this complex would be a business boost to implement the agreement”.

The Managing Director of ASR Africa, Ubong Udoh, applauded the management of the University of Jos for being an outstanding institution. He added that all of the universities who are beneficiaries of the ASR Africa Tertiary Education Grant Scheme, were selected based on some stringent criteria which include the quality of leadership, the academic excellence at the University, amongst others.

“I want to start by commending the vice chancellor and the management of the university. He was very right when he said the criteria for qualification for this grant was very, very stringent. It was tight. But the University of Jos was very proactive. They actually sent us an application even before we opened to receive proposals. So they were one of the first universities to send the proposal and of course that put them high on the priority list.

“I congratulate you all for proactive and visionary governance. I want to talk also about another aspect of the criteria for qualifying for this grant, which is the vision and leadership of the university in question. The vice chancellor has proven beyond reasonable doubt. He’s a man of vision, he has created a lot of solutions. He has attracted a lot of development and infrastructure to the university. And I can only say that it was very easy for us to agree to partner with him and to partner with this institution to add value to where the gaps are.

“The choice of a sport complex is also very heartwarming to me. Like the VC said, I’m a sports lover. I’m a product of the university Games system, a proud winner of gold medals at Nigeria University Games Association in basketball. So when we saw the sports complex as a project, I mean, it was very heartwarming for me, because I believe we don’t just provide kids with a place to exercise and get healthy. When we build a sports complex or sports facility, we create a platform for social cohesion, for building unity, for building character. A place where kids can go and build their self esteem and become great citizens. This is a special and unique project and we’re very pleased that University of Jos is embarking on this.

“ASR Africa is the brainchild of Alhaji Abdul Samad Rabiu. It’s a hundred million dollar annual fund for renewal and social development. Samad Rabiu has committed $100 million every year to intervening and creating solutions in the areas of health, education and social development.

“He is passionate about giving. He’s always been a giver. His family has always been a giving family. But he’s also passionate about Africans and Nigerians taking responsibility to solve their own problems, looking inwards and creating our own solutions. This is why he created ASR Africa as a platform where we can look inwards and create solutions to our own problems”; the MD said.

Udoh assured the university of the speedy completion of the project ahead of NUGA games and reiterated the commitment of the Chairman of BUA Group and ASR Africa, in supporting the education sector in Nigeria and Africa as a whole by providing indigenous solutions.

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Dangote Donates Bags Of Rice To 48 Charity Groups

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Alhaji Aliko Dangote

 

Continuing its National Food Intervention Programme, the Aliko Dangote Foundation has facilitated the distribution of thousands of bags of rice to beneficiaries and vulnerable Nigerians in the Federal Capital Territory, Abuja, with no fewer than 48 charity organizations and orphanages involved in the process.

According to the company’s spokesperson, Anthony Chiejina, the initiative represents a continuation of the Foundation’s commitment to supporting the government and the Nigerian populace in alleviating economic hardship within the country.

Mr. Chiejina noted that following the National Flag-off events in Kano and Lagos, the Foundation initiated the distribution of one million bags of rice throughout all the local government areas in Nigeria last month.

The coordination of the distribution exercise in Abuja is being undertaken by the 1Ummah Foundation, led by Mrs. Azeeza Hassan-Jibril.

Speaking to newsmen, Mrs Jibril said some of the groups that are supporting the ADF in the distribution exercise are: Hope for survival Children’s Home Gishiri, Child to Child Charity Foundation, Gajiya Charity Foundation, Mission for Education, Social and Health (MESH), JADAFIA Group, Network of Women with Disabilities (NWD), Dagam Pilame Community Association, Eeqra Foundation/Orphanage, Leprosarium-Yangoji, Support our troops (SOT) Foundation for widows, Karmajiji Disabled Colony, Bimbola Nutrition and Health Foundation, NASFAT Foundation, and JIBWIS Group among others.
Mrs. Jibril said the donation will greatly and positively impact on the beneficiaries in Abuja.

Reacting, Lead Program Officer of the Mission for Education, Social and Health (MESH), Mrs Khadija Oladipupo, said the rice donation has helped “nourish and uplift those in need within our communities.”

“Together, we’re making a meaningful difference in the lives of our population, especially those in need,” she said.
In her response, the Chief Executive Officer (CEO) of the Gajiya Charity Foundation, Hafsat Umar Gimba, expressed gratitude, describing the intervention as a generous assistance.

She said: “Receiving the items you sent has brought immense relief and comfort to the less privileged in the society during these hard times. Your kindness and compassion have touched their hearts profoundly. The rice provided have eased their burdens and provided them with the necessities they desperately needed.

“Knowing that there are individuals and organizations like ADF and 1Ummah who care deeply about the well-being of others fills me with hope and renewed faith in humanity. May you continue to be blessed abundantly for your noble work, and may your kindness inspire others to lend a helping hand to those in need.”

In the same vein, Administrative Secretary, Movement for Islamic Culture and Awareness (MICA), Adeniyi Akeem Akanbi, said: “we sincerely appreciate your support for the rice given us to share among our members and people of Lugbe environs. We say Jazakah lahu kayran to the Dangote foundation and pray Allah reward the organization abundantly.”
According to the President of Network of Women with Disabilities (NWD), Lois Auta, “Your commitment to supporting marginalized communities, particularly women with disabilities, exemplifies your dedication to social responsibility and compassion. Through your donation, you have not only alleviated the immediate needs of those in our network but also demonstrated solidarity and empathy towards our cause.”

Meanwhile, the President of the JADAFIA Group Mrs. Rakiya S Bamalli said: “I want to express our heartfelt appreciation for the generous donations provided by the Aliko Dangote Foundation during the holy month of Ramadan.

“The contributions have enabled us to expand our Ramadan outreach programs, including the distribution of food packages, iftar meals and essential supplies to families and communities facing hardship. This has made a significant difference in our efforts to provide relief to those in need within our community.”

Responding, representative of the Bimbola Nutrition and Health Foundation Mr. Femi Akosile said: “We take this moment to appreciate Aliko Dangote Foundation for the provision of 10kg bags of rice for distribution to the less privileged and vulnerable groups.

“Your contribution has made a significant impact on our efforts to support those in need in our community. The rice has been distributed to families and individuals who are experiencing food insecurity. We want to sincerely say that your partnership and commitment to making a positive difference in our community are truly inspiring, and we are honored to have had the opportunity to work with you.”

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How Aliko Dangote supported businesses in Nigeria-Sambajo

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President of the Dangote Group Aliko Dangote has been described as a rare gem and kind hearted industrialist for nurturing trading and commercial activities in North and across Nigeria for almost four decades.

Speaking when he visited the Dangote pavilion at the ongoing Kano International Trade Fair, Alhaji Salisu Sambajo, said: “ I can say confidently that Aliko has been supporting us for the past 40 years, and he has lifted us up when our businesses where going under.”

Mr. Sambajo is a Kano based international business tycoon, and chairman of the Sambajo General Enterprises Limited. He’s considered one of the biggest business names in northern Nigeria.

“Aliko’s support in growing commercial activities in the North and all over the nation cannot be quantified. The history of Nigeria’s commerce, and indeed of industrialization, cannot be completed without his name topping the list. It’s only God that can reward him,” he said.

The business mogul added: “I am telling you this confidently because I am one of the beneficiaries of his generosity. No one can deny his kindheartedness and support, and God is with such people.”

He recalled that Mr. Dangote had committed billions of naira through Bank of Industry for the development of small businesses in Nigeria, adding that the Fund was expected to create one million jobs.

The business mogul also recalled that Mr. Dangote had supported the Federal Government with billions of naira during the 2012 flooding in Nigeria.

“During the Covid-19 pandemic, we read it in the news that Aliko donated billions of naira. All these are coming from one person. Nigeria should be grateful to him,” he said.

He added that: “ Also remember that at the peak of the Boko Haram crisis, Aliko Dangote had donated a housing estate worth billions to the Internally Displaced persons in Borno State. I can go on and on. His interventions are so numerous.”

According to the businessman, “Aliko has since stopped working for himself. All he has been doing is to lift people out of poverty. I remember whenever we recorded losses, Aliko will lift us up again and again. I don’t want to go into specifics. He’s a very kind and generous person. He deserves all our respect and it’s a big honour that God created such a man in Nigeria.”

Mr. Sambajo said it is not for nothing that Mr. Dangote, is Nigeria’s biggest private sector employer.

The business mogul traced relationship with Mr. Dangote to over 40 years, adding that he has been a great philanthropist who has his country and Africa at heart.

Mr. Sambajo described the upcoming Dangote Refinery as a legacy project that will positively impact the country’s economy.

Dangote Group is the major sponsor of the ongoing 44th Kano International Trade Fair.

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