Dangote flour returns to profitability, posts N2.64bn profits

Dangote Flour Mills at the weekend reported a profit before tax of N2.64 billion for the half year ended June 30, after its re-acquisition from Tiger Branded Consumer Goods.

In a statement released by the company, the profit before tax was against a loss of N9.55 billion posted in the corresponding period of 2015. Its gross profit stood at N14.03 billion during the period, while profit from operating activities rose to N8.47 billion.

The statement said that the financial performance was heart-warming, given that the Dangote Flour Mills recorded losses in the past. It attributed the growth to the restructuring by the new board and management after the company’s reacquisition, which included the reopening of the closed Dangote Flour Mills in Kano.

Mr Ighodalo Asue, the company’s Chairman, said the firm would continue to embrace investment opportunities to increase market share and shareholders’ value. He said since the takeover that the management had taken a lot steps to reposition the company through expansion to drive growth.

“We bought back Dangote Flour Mills from Tiger Branded and by this move, it means we have a stronger, better sophisticated and more focused Dangote Flour Mills. We are also using this medium to restate our commitment to increasing our shareholders value and our dear customers,” Asue said.

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He said that the company would continue to invest in the state and other parts of the country and even beyond the country for job and wealth creation. “It is our hope that our return to Kano will create more job opportunities and impact positively on the economy of the state.

Asue said that Aliko Dangote’s decision to buy back the company had saved the jobs of about 3,000 employees and the shares of over a million shareholders.

He said that the multiplier effect of his investment in the country was immeasurable.

Mr Thabo Mabe, the company’s Group Chief Executive Officer, was also quoted by the statement as saying that it return to profitability was due to several adopted initiatives to increase market share and create value for shareholders.