By Franklin Ocheneyi
DANGOTE Sugar Refinery Plc says procurements of its Non-Fortified Sugar by local manufacturers of confectioneries and soft drinks accounted for 30 percent (or N6.120 billion) of the Group’s turnover of over N204 billion in Financial Year ended December 31, 2017.
The balance of N197.88billion came from Vitamin A-Fortified sugar sold to distributors who sell to small wholesalers;
In the Annual Reportfor the period under review, the Group said that manufacturers of confectioneries and soft drinks are their major customers.
“There is a single customer who buys industrial non-fortified sugar that represents more than 10 percent of the total sales during the year.
The customer is Nigerian Bottling Company Limited with total value of N28.190 billion.
There are leading blue chip companies and they include manufacturers of confectioneries and soft drinks. This group typically accounts for 30 percent of the Group’s sales. They buy Non-Fortified Sugar exclusively.
“The Group sells unfortified sugar mainly to pharmaceutical, food and beverage manufacturers, while Vitamin A-Fortified sugar is sold to distributors who sell to small wholesalers; confectioners and other small value-adding enterprises who provide the distribution network to the retail market.
“The Group sells a small amount of sugar directly to retail customers. Retail packaging comes in various sizes of 250g, 500g and 1kg under the brand name “Dangote Sugar.” Sales to distributors account for 70 percent of the Group’s revenue.” the report said.