Economy Maritime

Dangote Sugar Posts N54BN Profit before Tax In 2017

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Written by Maritime First

….As Terragon invests $5m to expand tech marketing***

Dangote Sugar Plc has posted a profit before tax of N53.599 billion in its full year ended December 31, 2017. The company’s result released on the Nigerian Stock Exchange at the weekend revealed that profit before tax for the period increased by 173 per cent to N53.599 billion from N19.614 billion recorded in the corresponding period of last year.

Also, the sugar refiner’s group profit after taxation for the year increased by 176.3 per cent to N39.78 billion compared to N14.395 billion in 2016, while its earnings per share rose to N3.31 from N1.20 in 2016. The management of the company proposed a final dividend of N1.25 per share, bring the total dividend for the 2017 business year to N1.75 per share.

The company had earlier paid interim dividend of 50 kobo per share. Furthermore, Dangote Sugar grew its revenue for the period by 20.44 per cent to N204.42 billion from N169.72 billion a year ago, which was driven by price of refined sugar.

In the financial results, the firm said its gross profit increased for the period by 121.8 per cent to N50.99 billion from N22.99 billion recorded last year as a result of different strategies the management put in place to save cost.

The Group liquidity position improved from N35 billion to N41 billion as at December 31, 2017. The company’s EBITDA up 113 per cent to N51.4 billion from N24.14 billion, while EBITDA margin stood at 25.15 per cent up from 14.2 per cent.

Speaking on the results, acting group managing director, Abdullahi Sule, said, “we are very pleased with the 2017 business year, with an increased revenue growth of 20.4 per cent over N167.7 billion recorded during the same period in 2016, and N28 billion gross profit increase of 121.8 per cent, the best recorded in the history of the company.”

For 2018, Sule said “our focus remains the actualization of our Backward Integration Programme (BIP) plan with focus on the achievement of 1.080 million metric tonnes (MMT) sugar from our BIP sites in the next 6 years.” He added that while concerted efforts are being made to leverage our strengths and maximise every opportunity to increase the company’s market share and create sustainable value for all stakeholders.

Meanwhile, Terragon Group says it is poised to expand the reach of its data and marketing technology platform with $5m investment from TLcom Capital.

The company, while announcing the conclusion of the $5m funding round, said the technology platform would be pioneered in collaboration with Nigeria’s largest telco, MTN.

According to the firm, the proprietary marketing technology connects online and offline mobile channels to provide African brands and the Small and Medium Enterprises with more customer reach, engagement and conversions with self-service access.

It added that the platform from Terragon offered unprecedented reach and engagement channels for the African mobile customer with associated data and intelligence made available on mobile web.

The Chief Executive Officer, Terragon Limited, Elo Umeh said, “The new investment would enable the Lagos-headquartered company to hire the best available talents to drive business development efforts across industry verticals and solve unique mobile challenges to unlock significant value for African businesses.”

With African businesses in various industries struggling to reach and engage customers in the face of limited Internet access and low literacy levels, Terragon said it would help clients, including FCMB and FBNQuest in financial services, and Unilever and Samsung in the consumer goods space, connect with new and existing consumers across online and offline mobile channels, providing the reach and targeting to deliver on their marketing objectives.

The Partner at TLcom, Ido Sum, who is joining Terragon’s board, said, “We have followed Terragon closely for a while, seeing it develop into a world-class marketing technology company, targeting the unique African opportunity.”

“Over the years, we led investments into upstream (exited to Actis), as well as New York City-based Persado and Cubiq, that are among the leaders in the MarTech space in the United States, and we are convinced that Terragon’s deep market understanding and platform quality can allow Africa’s top brands as well as the SMEs to finally reach, acquire and serve African consumers at scale like never before,” Sum added.

The statement noted that TLcom’s commitment was the second from its $40m TIDE Africa Fund for early and growth-stage digital companies.

According to the firm, Terragon, with over 100 employees, works closely with the largest mobile network operators in Africa, fast moving consumer goods brands, agencies, financial institutions, leading publishers, mobile device manufacturers and app developers on the continent, giving brands access to over 100 million consumers on mobile web and non-web channels.

Punch with additional report from World Maritime News

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Maritime First