DANGOTE SUGAR: 2016 WAS SWEETER THAN SUGAR.

So, Nigeria was in recession in 2016 and things were pretty difficult? Well, not for companies like Dangote Sugar Refinery PLC.

The year turned out to be so sweet for Dangote Sugar that even shareholders have a right to wonder if it could be true.

Dangote Sugar had changed its year end to December from September so 2016 was really a 15 month one, hard to compare with 12 month. 2015.

But as it turned out there was no basis for comparing them because performance in 2016 was beyond comparison.

For example, in the 15 month 2016, total revenue at N105,765.3m was more than double the 2015 mark.

Yet, for a 15 month period, cost of sale grew by only 75.4% to N76417.6m thus allowing gross profit to hit N29347.7m compared to 12 month 2015's N4468.1m.

Down the line from there, everything came in the superlative package of high growth in inflow and low growth in outflow with the exception of Other income which increased by only 17.4% to N1382.5m.

According to the published figures, distribution and administration cost increased by only 20.6% to N11804.6m; finance cost rose by 25.6% to N4887.6m and impairment provision ended with write back of N1050.7m not needed as against N2658.8m provision in 2015.

Then finance income  jumped to N670.7m compared to just N2.61m in 2015.

In effect, the only negative Dangote Sugar had to absorb with some pain in 2016 was N3940.3m in forex loss as against N1775.8m in 2015; up 121.4%.

Hence, in 15 months of 2016 year, Dangote Sugar reported N11,819m profit before tax compared to N12466.2m loss in 12 months of 2015.

 No doubt, this was even sweeter than sugar, more like honey.

DANGOTE SUGAR: Nm 15mths
                              2016.         2015
Total income.  107818.9  49206.7
Core income.   105765.3. 48026.7
Cost of sale.      76417.6.  43558.6
Other income       1382.9.    1177.6
Distribution etc 11804.6.  9788.4
Impairment         1050.7 (2658.8)
Forex loss           3940.3.    1775.8
Finance income.  670.7.        2.61
Finance cost       4887.6.    3891.5
Profit b4 tax.     11819.0.  (12466.2)
Profit margin%      11.0         (25.3)
Working capital  2303.6  (28365.2)


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