Dangote Sugar Refinery Plc · NSENG:DANGSUGAR
Dangote Sugar Refinery — FY2023 Earnings Presentation
22 slides from Dangote Sugar Refinery's earnings presentation, Mar 7, 2024
Slide 1: FY 2023 Results
FY 2023 Results AUDITED RESULTS FOR TWELVE MONTHS ENDED 31st DECEMBER 2023 7th March 2024 www.suagr.dangote.com www.suagr.dangote.com
Slide 2: Presenters
PRESENTERS Ravindra Singh Singhvi Group Managing Director 40+ years experience in leadership positions in PRESENTERS the sugar, petrochemicals, cement, and textiles products industries Oscar Mbeche Group Chief Financial Officer 35+ years experience in financial management, governance, fundraising, c
Slide 3: Market leader in sugar manufacturing
Market leader in sugar manufacturing The largest sugar refinery in Sub-Saharan Africa with an established blueprint to be a leading global integrated sugar company Current combined installed refining capacity Targets additional 1.5MMT of refined of 1.49MMT across Apapa and Numan. sugar from locally
Slide 4: Key products
Key products Dangote Sugar refines Vitamin A fortified granulated white sugar for direct consumption as well as the unfortified white sugar for industrial use Vitamin A fortified Sugar Dangote vitamin A fortified refined granulated fine white sugar, is produced to the highest quality packaged in 50k
Slide 5: Nigeria - macroeconomic environment
Nigeria - macroeconomic environment Real GDP Growth (%) 2023 Sector Contribution to GDP Movement in Oil Prices ($) 4.0% 3.4% Oil 120 3.1% 2.7% 5% Industries 3.0% 2.3% 18.6% 1.9% 100 2.0% 0.8% 1.0% 80 0.0% Services Agriculture 56.2% -1.0% 2017 2018 2019 2020 2021 2022 2023 25.2% 60 -2.0% Non-Oil -1.9
Slide 6: FY 2023 snapshot
FY 2023 snapshot Commendable results despite difficult operating conditions Aims to enhance its existing refinery operations (Numan) as well as develop greenfield sites at Nasarawa, amongst others OPERATIONAL FINANCIAL BACKWARD INTEGRATION Adamawa Revenue up 9.5% at 1.5MMT production target of refin
Slide 7: Backward Integration Project
Backward Integration Project www.suagr.dangote.com
Slide 8: Sugar for Nigeria Master Plan
Sugar for Nigeria Master Plan Our goal is to produce 1.5Mta of refined sugar from locally grown sugarcane within the next ten years Dangote Sugar Backward Integration Project Numan Operations 32,000ha brownfield Sugar Lau/Tau Sugar Backward Integration estate in Project 25,000ha greenfield Sugar Ada
Slide 9: Brownfield Project – Numan Operations
Brownfield Project – Numan Operations Dangote Sugar Refinery backward integration project located at Numan, Adamawa State is a sugar production operation on 32,000 hectares of land, with a milling capacity of 50,000 tonnes of sugar per annum. Numan Operations • DSR Numan produces refined sugar from
Slide 10: Greenfield Backward Integration Projects
Greenfield Backward Integration Projects Nasarawa and Tau/Lau project 01 Nasarawa Sugar Company: 68,000ha greenfield project, located in Tunga • Commenced installation of phase 1 of the 6,000ha of commercial development • Completed bush clearing for phase 1 of commercial development • Commenced desi
Slide 11: Financial Overview
Financial Overview www.suagr.dangote.com
Slide 12: 6-Year historical financials
6-Year historical financials Revenue (NGN’bn) EBITDA (NGN’bn) Profit After Tax (NGN’bn) 5-year CAGR: 24% 441.5 5-year CAGR: 16.9% 92.1 5-year CAGR: -2.3% 403.2 82.9 54.7 276.1 22 22.4 29.8 22.1 58 214.3 48.5 150.4 161.1 37.9 35.9 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2018 2019
Slide 13: Income statement
Income statement Income Statement Financial Year ended 31st December 2023 ₦m 2022 ₦m % change • Group revenues up 9.5%, due to better price realisation to offset rising cost Revenue 441,453 403,246 9.5% Cost of sales (355,149) (311,283) 14.1% • Group EBITDA down 10.1%; with a margin of 18.8%, owing
Slide 14: Balance sheet
Balance sheet Balance Sheet As at 31/12/23 As at 31/12/22 ₦m ₦m Property, plant and equipment 167,083 157,762 Other non-current assets 33,145 - Current Assets 195,799 159,814 Cash and Cash Equivalents 204,763 174,858 Total Assets 600,790 492,434 Non-current liabilities 84 13,238 Current liabilities
Slide 15: Cash flow movement
Cash flow movement Movement in cash Cash ₦m As at 31st December 2022 174,858 Cash from operations after working capital changes 83,300 Income tax paid (22,319) Gratuity paid (50) Additions to fixed assets (19,515) Net interest received 10,492 Unclaimed dividend received 39 Lease liability payment 78
Slide 16: Ratios and liquidity
Ratios and liquidity Key financial ratio Cash balance of ₦204.8B and Net debt ₦’B 600 available liquidity covers short- term debt Current Ratio Net debt/EBITDA 500 412 205 0.8x 2.5x 400 300 Interest coverage ratio Debt/capital 208 200 2.5x 0.8x 100 EBITDA margin EBIT margin 0 Debt Cash balance Net d
Slide 17: Sustainability
Sustainability www.suagr.dangote.com Investor Presentation
Slide 18: A Sustainable Growth Culture
A Sustainable Growth Culture Dangote Sugar is passionate about building a sustainable future for its organisation and key stakeholders ▪ Dangote Sugar Refinery released its 2022 Sustainability Report in accordance with the Global Reporting Initiatives (GRI) standards as its framework for disclosing
Slide 19: Priority Strategic Sustainable Development Goals
Priority Strategic Sustainable Development Goals Dangote Sugar is passionate about building a sustainable future for its organization and key stakeholders Clean Water and 2 Zero Hunger 4 Quality Education 6 Sanitation Ensure inclusive and equitable quality education and promote lifelong learning Ens
Slide 20: Select Quality Certification and Awards
Select Quality Certification and Awards Duly certified and acknowledged for outstanding achievements in the manufacturing sector, particularly in the consistent production and maintenance of high-quality refined granulated white sugar Quality Certification Food Safety Management System Occupational
Slide 21: Outlook
Outlook Cost reduction strategies Enhance the effectiveness of our supply chain management processes through cost optimisation, inventory management and technology advancement. Ultimately reducing overall expenses and maintaining competitiveness in the market. Nigerian Sugar Master Plan Dangote Suga
Slide 22: For further information contact:
For further information contact: Investor Relations Dangote Sugar Refinery Plc ir@dangote.com www.suagr.dangote.com
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