Dangote Sugar Grows Profit by Over 300 Percent Despite COVID-19

Dangote Sugar Refinery Plc has once again proved it can make money in all conditions, including during the unusual COVID-19 pandemic.

The sugar manufacturing company grew revenue from N37.061 billion posted in the third quarter (Q3) of 2019 to N57.280 billion in Q3 2020 despite the COVID-19 pandemic and challenging business environment that grounded many businesses and forced corporations to shut down operations.

In the financial statements released on the Nigerian Stock Exchange’s website on Monday, the group cost of sales rose to a shocking N43.958 billion, up from N29.157 billion achieved in the corresponding period of 2019. Largely due to the surged in cost of production, especially with the local currency devalued twice in 2020 alone.

Still, gross profit expanded from N7.904 billion filed in Q3 2019 to N13.322 billion in Q3 2020 while operating profit almost doubled the N5.623 billion posted in the same period of 2019 to N10.480 billion in Q3 2020.

The company’s profit before tax expanded rose more than 100 percent to N12.033 billion, up from N5.936 billion recorded in Q3 2019.

In the same vein, profit after tax rose more than 300 percent from N3.726 billion posted in the third quarter of 2019 to N15.049 billion in the third quarter of 2020.

Dangote Sugar grew total assets from N93.627 billion achieved in the nine months ended September 30, 2019 to N166.016 billion in the same period of 2020. Again, the company’s equity expanded to N121.566 billion, up from N100.478 billion in the corresponding period of 2019.

The sugar manufacturer’s total liabilities more than double to N148.844 billion from N69.180 billion in the nine-month ended September 30, 2019.