NIGERIA – Dangote Flour Mills Plc has returned to profitability, posting a Profit Before Tax (PBT) of N2.64 billion in the half year ended June 30, 2016, compared to a loss of N9.55 billion posted at the corresponding period in 2015 after its re-acquisition from Tiger Branded Consumer Goods Plc some months ago.
Dangote Flour Mills consist of Dangote Flour, Dangote Pasta, and Dangote Noodles.
According to the half year report of the company released on the floor of the Nigerian Stock Exchange, the flour milling group recorded a gross profit of N14.03 billion in the period while profit from operating activities rose to N8.47 billion.
The company said in a statement that the financial performance was heartwarming given that the Dangote Flour Mills recorded losses in the past.
Recall that the company was sold to Tiger Brands but later reacquired and re-positioned for good results.
Having reacquired the flourmills, the new board and management started a restructuring process which included the reopening of the closed Dangote Flour Mills, Kano.
Chairman, Dangote Flour Mills Plc, Ighodalo Asue, speaking on the repositioning said: “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 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’ value and our dear customers.”
He assured that the company will continue to invest in the state and other parts of the country and even beyond the country, “because we believe in 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 “ he added.