Melvin Onwubuke
Dangote Sugar Refinery Plc has reported a loss before tax of N108.92 billion compared to a pre-tax profit of N82.3 billion a year earlier.
The company notes that these losses are mainly due to a significant depreciation of the naira, which has in general reduced operating profits for many manufacturers in Nigeria.
Dangote Sugar suffered a foreign exchange loss of N172.198 billion, according to the notes accompanying its recent annual report and financial statements for fiscal year 2023, according to nairametrics.
This wiped out its operating profit of N76.68 billion
As a result, from N171.2 billion to N79.2 billion, shareholders’ funds were depleted by 53%.
However, In order to address significant volatility in foreign exchange and cost inflation, the company further reported that it had taken a strong margin management and cost control initiative.
The company has also emphasized the positive earnings from its Numan operations, its intention to speed up backward integration efforts, and the evaluation-specific actions aimed to boost its overall operational effectiveness and profitability
