Dangote Flour returns to profitability
Posts N2.64 PBT in half year
Following its re-acquisition from Tiger Branded Consumers Goods, Dangote Flour Mills Plc have returned to profitability, posting a profit before tax (PBT) of N2.64 billion in the half-year operations, compared to a loss of N9.55 billion posted at the corresponding period in 2015.
According to the company, Dangote Flour Mills, which consists of Dangote Flour, Dangote Pasta, and Dangote Noodles was sold to Tiger Brands but due to losses recorded by the company, the management decided to reacquire the company and reposition it for improved performance.
Having reacquired flourmills, the new board and management started a restructuring process, which included the reopening of the closed Dangote Flour Mills, Kano.
Consequently, the unaudited result for the half year ended June 30, 2016 showed that the firms recorded a profit before tax (PBT) of N2.64 billion in the half-year operations, compared to a loss of N9.55 billion while gross profit rose from N2.6 billion to N14.03 billion during the period under review. Profit from operating activities also rose to N8.47 billion.
The Chairman, Dangote Flour Mills Plc, Ighodalo Asue explained that the company has taken a lot of measures, especially in the areas of expansion to reposition the company.
According to him, the company was committed to creating value for shareholders through expansion in order to create more job opportunities and impact on the economy.He added that the return to profitability was occasioned by several strategies adopted by the company to increase market share and create value for shareholders.
“We bought back Dangote Flour Mill from Tiger Branded and by this move, it means we have a stronger, better sophisticated and more focused Dangote Flour Mills. Since the takeover, we have taken a lot steps to reposition the company through expansion to drive growth.
I will like to commend Aliko Dangote for his investment in Dangote Flour Mills. A few months ago when Tiger Branded Company was going to leave the country, it appears that the fate of the company was in jeopardy, but Aliko Dangote’s decision to buy back the company has saved the jobs of about 3000 employees and the shares of over a million shareholders.
More importantly, the multiplier effect of his investment in the country is immeasurable. We are using this medium to restate our commitment to increasing our shareholders value and our dear customers. Let me assure you that we will continue to invest in the state and other parts of the country and even beyond because we believe in job and wealth creation. He also expressed optimism that the ‘return to Kano’ would create more job opportunities and impact positively on the economy of the state.