Dangote Sugar Refinery (DSR) Plc recorded well-rounded performance in the third quarter as net profit rose by 81 per cent to N26.6 billion within the nine-month report.
Key extracts of the interim report and accounts of DSR for the nine-month period ended September 30, 2020 showed that turnover rose by 36.7 per cent to N160.51 billion as against N117.42 billion recorded in comparable period of 2019.
Profit before tax grew to N29.08 billion in third quarter 2020 as against N22.97 billion in third quarter 2019. After taxes, net profit leapt by 81.1 per cent from N14.7 billion to N26.63 billion.
Market analysts attributed the improved performance to synergistic gains from scale and operating efficiency. DSR recently concluded acquisition of Savannah Sugar Company Limited with the listing of the additional shares that arose from the acquisition at the Nigerian Stock Exchange.
Shareholders of DSR had earlier approved the acquisition of Savannah Sugar Company Limited (SSCL), a subsidiary of DSR in a deal aimed at further integrating the operations of the group.
With the approval, a total of 146.878 million ordinary shares of Dangote Sugar Refinery was issued as consideration for 162.76 million ordinary shares of 50 kobo each held by shareholders of SSCL.
Shareholders approved that all assets including all tax attributes, unutilised capital allowances, tax losses, withholding tax credits and any other tax refunds available subject to the approval of the Federal Inland Revenue Service (FIRS)), liabilities and business undertakings, including real property and intellectual property rights of SSCL be transferred to DSR, pursuant to the scheme of arrangement for the business combination.
With the combination, all legal proceedings, claims and litigation matters pending or contemplated by or against SSCL shall be assumed by DSR after the scheme becomes effective.
Dangote Sugar is Nigeria’s largest producer of household and commercial sugar with 1.44 million metric tonnes refining capacity at the same location. The refinery located at Apapa WharfPorts Complex, refines raw sugar to white, Vitamin A fortified refined granulated white sugar suitable for household and industrial uses.
