BUSINESS Dangote to invest NCAA, CPC probes N106bn in sugar refining Turkish Airline over students’ flight delay
Dangote Sugar Refinery has said the company would invest N106 billion in the next six years in achieving its Backward Integration Programme (BIP) and making Nigeria, sugar self sufficient.
Speaking at the company facts behind the figure, yesterday in Lagos, the acting Group Managing Director of Dangote Sugar, Engr. Abdullahi Sule said Dangote Sugar will commence its phase two sugar master plan and the company will be investing N106 billion in achieving it.
According to him, the company will be acquiring five large sugar factories, 108,000 Hacters? of land under cultivation, 1.08 million MT/PA of refined sugar from locally grown sugar can per annual.
He also said that 130 million litres of. Ethanol potential across all sites, animal feed and surplus power generation capacity to be sourced from cane fiber and generate over 75, 000 jobs to be achieved under its six years second phase master plan.
He noted that how the project will be financed is yet to determined by the management, saying the company remains zero debt and has the capacity to borrow.
He however said that 20 per cent of the project will be financed through equities.
“The year 2016 was a challenging year, yet we declared fantastic result that was better than 2015 performance, as if that is not enough we have just published our first quarter result which is far better that the previous year.”
He stated that Dangote Sugar has continued to maintained at least 70 per cent market share and is also getting ready to produce over 70 per cent of what Nigerians will use through backward integration.
For its first quarter result ended March 31, 2017, revenue up by 83 per cent to N59.5 billion from N32.6 billion in 2016 and 71 per cent of first quarter budget achieved.
Cost of sales went up 100 per cent, due to increase gas, gross profit increased 16 per cent to N7.84 billion as against N6.77 billion. Profit before tax increased 28 per cent to N7.04 billion, while profit after tax went up to N4.76 billion from N3.34 billion in 2016.
Sule stated that “Achievement of our BIP plan and growing our market share remains our focus, and efforts are geared towards achievement of effective resource optimisation and cost management; drive for greater efficiency especially in supply chain; human capacity building and route to market redefinition.
The company posted a turnover of N169.72 billion, higher than against N101.06 billion achieved in the corresponding period 2015. Profit after tax also rose from N11.14 billion to N14.39 billion during the period under review. FLIGHT
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