Dangote’s Earnings Report: Dangote Sugar recorded a 33% surge in its yearly revenue report.

Dangote Sugar Refinery Plc. recently declared a 33% Year to year growth in earnings to N29.8 billion for the financial year of 2020.

The company’s impressive report exceeded a significant number of stock experts expectations despite a surge in tax charges which partially offset some of the positive passthrough from border closures on earnings.

Its gross margin expanded by 1.31ppts Year to Year to 25.08%, which points to the effects of recent cost-control measures and the slump in global raw sugar prices in 2020 (the raw sugar price dropped to as low $0.09/lb in 2020) amid the COVID-19 pandemic.

That being said, in spite of such impressive results from Dangote Sugar, a company valued at N217 billion, experienced a surge in operational cost in four-folds partly due to persistent FX scarcity, which were driven by persistent Foreign exchange shortages and naira repricing at the exchange rate windows.