Dangote Sugar’s Q3 records 236% PAT growth
Dangote Sugar Refinery (DSR) Plc has shown commitment to rewarding shareholders remarkably, with impressive growth posted in its third quarter 2017 unaudited result.
The company’s result released by the Nigerian Stock Exchange (NSE) on Thursday ,for the period ended 30th September, 2017, showed imposing growth in key performance indices even as sales year on year were flat.
The Q3 DSR result showed numerous growth positions across the Profit and loss (P&L) lines. Even as the company’s sales during the quarter was flat, both Profit before tax(PBT) and profit after tax(PAT) were significantly advanced by 236 per cent y/y and 244 [per cent y/y, respectively.
The result showed that profitability for the quarter was driven by a marked gross margin expansion of +2153bps y/y to 32.9 per cent, while operating expenses (PEX) which came in flattish y/y also contributed.
The growth in PAT/PBT lines were lauded by experts as market surprise and tipped to define the company’s fourth quarter result tilt to reward investors for their confidence and commitment to grow their investments in the global rated sugar company.
Daily Times recalls that management of the company had earlier stated that gas, relatively cheaper than the alternative LPFO, accounted for 100 per cent of the Lagos Refinery’s fuel usage for July and August.
Sequentially, sales declined q/q while PBT and PAT both fell by around 24% y/y. Given that the month of Ramadan, seasonally DSR’s highest sales month, fell within Q2, the q/q decline is unsurprising.
