Dangote Flour Mills Plc said it has achieved a profit before tax of N11.82 billion for its financial year ended December 31, 2016.
In its result on the Nigerian Stock Exchange (NSE), the group’s profit before tax went up from N11.59 billion to N11.82 billion in 2016, while profit after tax decline from N12.11 billion to N10.57 billion in 2016.
Further analysis on the group performance showed that Dangote Flour posted a revenue of N105.8 billion from N48.027 billion in 2015, cost of sale went up by 75.44 per cent to N76.42 billion from N43.56 billion, while gross profit up by 14.9 per cent to N29.35 compared to N25.55 achieved in 2015.
The company in a statement said that “Total group assets exceeded total group liabilities as at December, 31, 2016 by N24.2 billion, total group liabilities exceeded total group assets by N3.1billion.”
Capital market analysts described the company’s performance as heart-warming 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.
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.”
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.