Dangote Sugar Plc has revealed that it handled currency adjustment and inflation pressure by increasing the average net selling price to N23,647.5 in 2022 from N17,781.3 during the same period in 2021. It also noted that the increase also sponsored its topline growth of 46.1%.
This was disclosed by the company’s CEO, Ravindra Singh Singhvi during an earnings call. Singhvi also spoke about the notable shocks in their business environment. These shocks include changes in global market dynamics fueled by a hike in international prices of raw sugar, FX unavailability, currency adjustment and a high inflation environment.
Dangote Sugar’s investment
Singhvi also revealed that the group is significantly scaling up its investment in the sugar sub-sector in line with Nigeria Sugar Master Plan (NSMP) requirement.
He hinted that the company through the expansion of DSR Numan Sugar Refining capacity from 3,000 tonnes of cane per day (tcd) to 6,000tcd is making massive investments in Adamawa State which will bring the total capacity to 9,800 TCD on completion of the upgrade.
The Company CEO added that the management of the group will continue to boost its customer base with value-creation activities and partnerships that will enhance growth. He said, “We would sustain brand awareness in trade through our newly launched retail packaging designs to complement the bulk packaging as we continue to engage and bond with our trade and channel partners.”
Speaking further, Singhvi noted that the achievement of the Sugar for Nigeria Backward Integration Project goal remains a key priority. He also noted that the group anticipates an increase in cost to completion in Naira-terms due to the continued impact of the current economic situation on business operations globally. The CEO further expressed confidence that the Backward Integration Programme will positively impact the economy.
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