Dangote Flour records N8.47bn profit after takeover
Dangote Flour Mills Plc’s profit from operating activities has risen to N8.47bn.
This came some months after the group was reacquired from Tiger Branded Consumers Goods Plc.
The group posted a profit before tax of N2.64bn in the half-year ended June 30, 2016, compared to a loss of N9.55bn posted in the corresponding period of 2015.
Dangote Flour Mills consist of Dangote Flour, Dangote Pasta, and Dangote Noodles.
According to its half-year report released on the floor of the Nigerian Stock Exchange, the flour milling group recorded a gross profit of N14.03bn in the period.
The group, in a statement on Sunday, described the financial performance as heartwarming given that the company had recorded losses in the past.
It was sold to Tiger Branded Consumer Goods, but later reacquired and re-positioned for good results.
Having reacquired the flour mills, the new Board of Directors and management started a restructuring process, which included the reopening of the closed Dangote Flour Mills in Kano.
Speaking on the repositioning, the Chairman, Dangote Flour Mills, Ighodalo Asue, said, “We bought back Dangote Flour Mill from Tiger Branded Consumer Goods 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 of steps to reposition the company through expansion to drive growth. We are also using this medium to restate our commitment to increasing our shareholders.”
He said, “I will like to commend Aliko Dangote for his investment in Dangote Flour Mills. A few months ago when Tiger Branded Consumer Goods was going to leave the country, it appeared that the fate of the company was in jeopardy, but Dangote’s decision to buy back the company has saved the jobs of about 3,000 employees and the shares of over a million shareholders. More importantly, the multiplier effect of his investment in the country is immeasurable.”
The Group Chief Executive Officer, Dangote Flour Mills, Thabo Mabe, was quoted in the statement to have said that the return to profitability followed several strategies adopted by the company to increase market share and create value for shareholders.
He noted that the Dangote Flour Mills was driven by the vision of putting its products on the table of every Nigerian.
Sources: Punch Newspapers