Dangote Sugar Plc, a part of Dangote Group dynasty has reported declined post-tax profits of N12.5 billion for the quarter ending June 30th 2018, a 25.6% drop from the N17.1 billion posted in the same period in 2017. Topline revenue also dropped 29.15% to N84billion for the quarter under review.
The Managing Director of the company in his comments admits and weigh in the challenges faced by the company in the period under review.
“Though we maintained our market leadership position in the sugar sector, the period under review was very challenging due to the impact of unlicensed sugar being sold in key markets nationwide, and logistics challenges brought about by the Apapa Access Road traffic gridlock.”
“Despite these challenges we continued to focus on increasing our refining and production efficiency, energy and cost saving projects and the relentless implementation of our Sugar Backward Integration Projects plan. We are confident that these actions will transform our business into a stronger, profitable and sustainable concern despite the tough operating environment.”
The earnings per share reported in the review period also stand at N1.06 as against the previous N1.43, representing a 25.6% in the corresponding period.
At the current price of N17.7, the PE Ratio of the company stands at 16.7x with about 5% earnings yield.