Shareholders Approve Dangote Sugar N500bn Rights Issue
Dangote Sugar Refinery Plc has received shareholders’ approval for a N500 billion Rights Issue, thus positioning the company to strengthen its financial standing, expand its capital base, and accelerate strategic initiatives.
The Rights Issue, the shareholders reasoned, will aid the Company in its ambitious backward integration projects.
The approval was given at the Company’s 20th Annual General Meeting held on Wednesday in Lagos, during which the Shareholders commended Dangote Sugar’s robust performance over the past year, underscoring their support for the organisation’s ongoing evolution and future plans.
Addressing shareholders, Dangote Sugar Chairman, Mr. Arnold Ekpe remarked that the year under review saw a marked improvement in performance, despite a challenging economic environment, noting that revenue growth and enhanced EBITDA demonstrate positive operational momentum. However, profitability was weighed down by a foreign exchange loss of N46.7 billion and additional finance costs totaling N128.6 billion.
The Group, he said, posted a turnover of N829.2 billion, a 25 percent increase over 2024 adding “the loss for the year improved to N64.1 billion from N270.9 billion in the prior year, while EBITDA rose to N149.6 billion, up from N43.0 billion.”
Despite these hurdles, Ekpe assured shareholders that decisive actions are underway to boost operational efficiency and revenue growth. “With shareholder backing for the rights issue, we are in a strong position to bolster our balance sheet, setting the stage for future growth and profitability,” he said.
The Chairman emphasized the significance of the backward integration program themed, “Sugar for Nigeria” as a cornerstone of the company’s strategic vision. “This initiative is expected to drive profitability and value creation, reduce import dependency, mitigate foreign exchange risks, generate employment, and support local farmers through the out grower scheme.
“Our objective is to produce 1.5 million metric tonnes of sugar annually from domestically cultivated sugarcane. This involves developing approximately 45,000 hectares, with 2.7 million tonnes of cane earmarked for Numan and 3.35 million tonnes for Nasarawa. Achieving this goal requires substantial investments in land development and production capacity over the next five years,” Ekpe stated.
Looking forward, he affirmed the company’s commitment to sustainable growth, positive impact, and enhanced profitability, saying that “we will continue optimizing our operations, pursuing market expansion opportunities, and increasing our presence across the nation. Aligned with the Dangote Group’s Vision 2030, we are dedicated to investing in our workforce and technology to consistently deliver exceptional products and customer satisfaction.”
The Group Managing Director and CEO of Dangote Sugar, Thabo Mabe, added that Dangote Sugar remains the sole producer of edible refined granulated white vitamin A fortified sugar, sourced from its backward integration site at Numan.
He mentioned that the company is diligently working to secure approximately $1.3 billion needed to fulfill its commitment to achieving a production target of at least 600,000 tonnes annually by 2030. “We have revised our strategic development plan to meet the 2030 objectives, leveraging the combined potential of DSR Numan Operation and Nasarawa Sugar Company Limited estates. This integrated plan targets substantial cane production of around 6.05 million tonnes across 45,000 hectares from both sites.”
Speaking at the AGM, a shareholder, Mrs. Bisi Bakare, commended Dangote Sugar Refinery for having the largest Sugarcane Outgrowers scheme in Nigeria, describing the scheme as a great boost to backward integration and domestic economy. she also praised the board and management for navigating the company through the harsh operating business environment.
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