Shareholders of Dangote Sugar approve N12b for 2009 dividend
Category: Capital Market
WEDNESDAY, 28 JULY 2010 BY MOSES EBOSELE
Shareholders of Dangote Sugar Refinery (DSR) plc on Tuesday approved proposal by the Board and Management of the company to pay a dividend of N1.00 for every one ordinary share of 50 kobo for the year ended December 31, 2009, amounting to N12billion.
The shareholders who spoke during DSR yearly general meeting in Kano also unanimously commended the Board and Management for keeping the company on the part of profitability despite various challenges.Chairman of Shareholders Trustee Association, Alhaji Mukhtar Mukhtar, said the N1.00 dividend should be commended, adding that while some Banks are paying less than N1.00 others are not in a position to pay shareholders dividend.
Raymond Anyiwo of the Consolidated Shareholders Association, who spoke in a similar vein, urged fellow shareholders to intensify their support to the company as part of strategies to achieve more returns in future.Earlier in his address to shareholders, Chairman of the company, Alhaji Aliko Dangote, said targets have been set to enable DSR militate against any unforeseen conditions that may arise in the course of this year.
Represented by a member of the board, Alhaji Sani Dangote, the chairman said, “We look forward to the future with a positive attitude. Our focus is on continued growth and expansion. This remains our strategy for the achievement of a sustainable growth for our company. We are confident that with our human material resources, this goal is realizable. We will continue to set growth targets for ourselves, using best practices in all areas of our operations,” said Dangote.Speaking further, Dangote said the goal of the company is on breaking new grounds, cost and overhead reduction, increased profitability, delivery of unequalled customer service and value by implementing result-oriented initiatives.
Within the year under review, the company declared N82.4billion turnover while profit after tax stood at N13.2billion.Making reference to the 2009 business year, Dangote told shareholders that the economic downturn that characterised the year led to some operational difficulties, adding that it was not peculiar to the company.
He said the development culminated to inflationary pressure witnessed in the global commodities market, which led to the incessant fluctuations in the cost of major material such as sugar.“During the same period, there was a significant depreciation of the naira and an increase in the price of gas. The banking sector reforms and its resultant effect led to liquidity squeeze in the system.
“In view of the foregoing, targets dates set for our growth and expansion projects were also affected. However, we did not relent, hence the Algerian Sugar Refinery, a wholly owned subsidiary of our company, named Dangote Sucreire SPA project is still on course.“The Board and Management are very confident that this investment will boost our income and contribute significantly to our future growth, profitability and enhanced shareholders value.
“Other activities are underway to ensure DSR plc continues to stay ahead of the pack in our immediate market. The retail pack project is also on course, despite a few unforeseen challenges we experience during the year” said Dangote.In his submission, Acting Managing Director of the company, Mr. Suleiman Olarinde said Packaging of products are now more friendly, adding that they are available one kilogram, 500g, 250g respectively.