DSR Plc Offers 50k Dividend To Shareholders

 

By Festus Okoromadu

 

The Board of Directors of Dangote Sugar Refineries Plc has proposed to 50kobo per share as dividend to shareholders of the company for the financial year ended December 31, 2012.

 

The company’s net profit grew by 42.75 per cent to N10.796 billion from N7.563 billion in 2011. However, sales declined during the period under review to N106.87 billion from N107.22 billion in 2011 representing 0.33 per cent drop.

 

Detail analysis of the financial report made available the company through the Nigerian Stock Exchange (NSE) yesterday showed growth in all profitability ratios parameters except liquidity ratio that recorded a marginal decline when compared to the figure reported in 2011.

 

Return on equity (RoE) rose by 4.01 basis points to 23.34 per cent as against 19.33 per cent, implying that the company brought more financial gains to shareholders in 2012 than it did in the previous year.

 

But in terms of liquidity, the company’s performance recorded a drop, implying that its ability to meet routine financial obligations was hampered in 2012 compared with what obtained in 2011. However, liquidity ratios such as current and quick ratios remained above the 1.5 basic requirements.

 

ThePost observes that dividend pay-out by the company has been on the decline in its last three financial years. Shareholders got 100kobo per share in 2010; 60kobo in 2011 and now 50kobo per share without any bonus since the company has been listed on the Exchange. 

 

Profitability Ratios

 

Return on equity (%)

23.34

19.33

Gross profit margin (%)

19.75

12.68

Profit margin (%)

10.10

7.05

Pre-tax profit margin (%)

15.28

10.19

 

 

 

Liquidity Ratio

 

Current Ratio

1.98

18.56

Quick Ratio

1.55

9.23

Debtors (No of days)

86.37

74.71

Creditors (No of days)

115.40

102.88

 

20112 Financial Snapshot

 

 

2012 (N’m)

2011 (N’m)

Gross Earnings

106,868

107,219

Cost of Sales

85,757

93,621

Gross Profit

21,111

13,598

Profit before tax

16,796

7,563

Profit after tax

10,796

7,563

Admin/Dist Expenses  

6,879

3,146

Shareholders fund

46,261

39,134

Basic E P S (kobo)

90

62