Dangote targets 700,000MT in sugar backward integration

• As Q1 revenue rises 20.1% to N122.7bn

Dangote Sugar Refinery Plc (DSR) is targeting 700,000 metric tons of refined sugar from locally grown sugarcane in the next four years, through its Backward Integration Programme (BIP).

The Chairman of Dangote Sugar Refinery Plc, Aliko Dangote, stated this at the company’s 18th Annual General Meeting (AGM) which was held in Lagos.

He spoke just as the Nigerian Exchange released the company’s first-quarter result for 2024, indicating an increase of 20.1 per cent in its revenue to N122.7 billion.

In 2023, the company recorded a group turnover of N441.5bn, a 9.5% increase over N403bn in the corresponding period in 2022.

It also recorded Profit Before Tax (PBT) of N108.9bn while Profit After Tax (PAT) is N73.8bn, incurred due to the non-cash foreign exchange loss of N171.4bn.

Dangote who rued the devaluation of the naira from N460 to N1400/$, said the best future of the company is through the BIP which would remove the foreign exchange uncertainty.

He stated that the focus on the Backward Integration Project is in alignment with the Federal Government of Nigeria’s policy guidelines.

He noted that the 700,000 metric tons would meet 50 per cent of the current market demand for refined sugar.

According to him, the 10-year sugar development plan to produce 1.5 million MT of sugar per annum from locally grown sugarcane remains a germane roadmap to the attainment of the company’s objective.

“Our focus is on achieving the revised targets set for DSR Numan Operations, Dangote Adamawa Sugar Limited and Nasarawa Sugar Company Limited, while we are hopeful that the Taraba State Government will resolve the community payment issues that have led to the stoppage of activities at the Dangote Taraba Sugar Limited, Lau/Tau project.”

He added, “During the year under review, despite the challenges we were faced with, the company significantly scaled up investment in the Backward Integration Projects with the ongoing expansion of the DSR Numan factory refining capacity from 3,000TCD to 9,800TCD year-end.

“The factory will be increased with an additional 5,200TCD to 15,000 TCD (tons of cane crushed per day) eventually to meet the need in view of the massive land development activities also going on at the site. The aim is to achieve 24,200 hectares in total by the year 2029.”

Dangote disclosed that Dangote Sugar (Ghana) Limited, was established as a subsidiary of the company during the year under review, in line with the plan to expand its presence in the sugar industry across Africa.