Business

Dangote Flour unveils new pasta, declares N11.82b profit after tax for 2016

Published

7 years ago

May 25, 2017

Olu Emmanuel

Spread The News

By ANDREW OJIEZEL

Despite the recession, Dangote Flour Mills has been able to declare turnover of N105.7 billion during the financial year, representing 120 per cent increase over turnover recorded in the previous financial year and a 556 per cent increase in gross profit rising from N4.4 billion in the previous financial year to N29.3 billion in the current year.”

The Chairman of Dangote Flour Mills, Asue Ighodalo, while addressing shareholders at the 11th Annual General Meeting in Lagos said “Despite the tough business environment, I am delighted to announce that your company delivered an impressive

turnover of N105.7 billion during the financial year.

According to a statement, the company achieved a complete turnaround on its bottom line, recording a profit after tax of N10.6 billion compared with a loss of N12.7 billion in the prior year.

ALSO SEE: Osinbajo seeks Reps approval for additional $1.2bn external loan

The Executive Director, Sales & Marketing, Halima Dangote at the post AGM interview attributed success recorded by Dangote Flour Mills in the current financial year to change in leadership and product innovation. She highlighted strategic and bold move by the company to grow its market equity in Africa by re-launching a new and improved pasta product, ‘Ecccellente’ with a great taste and in new pack. She said “The new improved and affordable pasta, is expected to reduce the dependency on rice consumption by Nigerians.”

Based on the dividend, shareholders commended the company for the turnover. One of the shareholders, Shareholders Rights Activist, Alhaji Muktar Muktar commended the Flour Mills management for returning the company to profitability as well reopening the shuttered Kano Mills. According to him, the reopening of the Kano Mills contributed to the increase in sales volume recorded by the flour mill.

He said that with return to profitability after years of losses, shareholders are encouraged that the board will recommend dividend payment in the coming years. He stated, “I want to commend you for this result. It clearly shows that this board is highly proactive and ready to tackle the problems of this company. You have significantly reduced the accumulated losses and reduced borrowings, I believe that under your leadership we should be able to receive dividends in the next couple of years.”