Dangote Sugar Confirms Price Increment, Gives Reasons

 

Dangote Sugar has revealed that it has had o increase its price for a number of reasons. This was contained in a recent statement the company issued.

According to the company, high cost of raw materials, energy costs as well as the fluctuation in foreign exchange are among several reasons why it had to take the decision.

“We have continued to witness high cost of raw materials, energy costs and other input costs due to rising inflation and FX rate fluctuation. Further cost escalation is anticipated in the year as inflationary pressure mounts,” the company said.

On the group’s performance for the first quarter of 2021, it revealed that its group sales volume increased in the quarter by as much as 5.7% to 200,510 tonnes as against 189,725 tonnes it did within the same quarter for 2020.

Part of it’s statement reads:

“Group sales volume increased in the quarter by 5.7% to 200,510 tonnes (2020: 189,724 tonnes). Growth continued to benefit from the sustained efforts to drive customer base expansion, several trade initiatives and investments. Group production volume also increased by 4.3% to 200,783 tonnes (2020: 192,584 tonnes) due to our operations optimization strategy despite the challenges of the Apapa traffic situation. Group revenue increased by 41.5% to N67.39 billion (2020: N47.64 billion). Growth in revenue advanced ahead of volume growth due to pricing benefits. Gross profit increased by 41.8% to N18.04 billion (2020: N12.72 billion) on account of better topline performance. EBITDA increased by 34.7% to N17.02 billion (2020: N12.64 billion) on account of increased earnings. Group profit after taxation for the period increased by 30.3% to N8.30 billion (2020: N6.37 billion) reflecting management’s unrelenting drive to deliver consistent shareholder value.”

Going by the report, it has been a somewhat impressive quarter for Dangote Sugar.

Battle of The Giants

Recall that Dangote cement and another top producer of the product, BUA Cement owned by another Kano billionaire businessman had been involved in a battle of wits and supremacy over who dominates the cement market.

After a number of spats from both sides, the matter was eventually resolved amicably by a reconciliation team initiated by Kano state governor, Abdullahi Ganduje in Abuja.