Business
Why We Increased & Likely To Increase Price Of Sugar – Dangote
This assertion is against the background of increased earnings provided by the company
Dangote group, one of the biggest manufacturers of Sugar has confirmed it increased the price of Sugar and provided the reason for the move.
The Sugar manufacturer made the revelation in a note to investors according to a report monitored by societynow.ng on nairamterics.com.
“We have continued to witness high cost of raw materials, energy costs and other input costs due to rising inflation and FX rate fluctuation. Further cost escalation is anticipated in the year as inflationary pressure mounts,” the company stated.
This assertion is against the background of increased earnings provided by the company powered by the richest black man in the world – Aliko Dangote – with the explanation that
“Group sales volume increased in the quarter by 5.7% to 200,510 tonnes (2020: 189,724 tonnes). Growth continued to benefit from the sustained efforts to drive customer base expansion, several trade initiatives and investments. Group production volume also increased by 4.3% to 200,783 tonnes (2020: 192,584 tonnes) due to our operations optimization strategy despite the challenges of the Apapa traffic situation. Group revenue increased by 41.5% to N67.39 billion (2020: N47.64 billion). Growth in revenue advanced ahead of volume growth due to pricing benefits. Gross profit increased by 41.8% to N18.04 billion (2020: N12.72 billion) on account of better topline performance. EBITDA increased by 34.7% to N17.02 billion (2020: N12.64 billion) on account of increased earnings. Group profit after taxation for the period increased by 30.3% to N8.30 billion (2020: N6.37 billion) reflecting management’s unrelenting drive to deliver consistent shareholder value.”
These revelations show that the growth recorded in the company’s revenues – from N67.39Billion in the first quarter of 2021 against N47.6Billion same period last year – has sales and increased in price as key indicators societynow.ng learned.
Findings have it that this development is on the heels of push for sanction – by Dangote and Flour Mill – against another Sugar manufacturer, BUA Group for trying to keep the market price of Sugar down ( and affordable ) with increased supply.
