Dangote Flour Mills returns to profitability

Thabo Mabe, CEO of Dangote Flour Mills.

It has posted a profit before tax of N11.82 billion for its financial year ended on 31 December 2016.

Review of the results indicated that the group’s operating profit went up to N16 billion, compared to a loss of N8.6 billion posted at the preceding year. Profit after tax went up to N10.6 billion in contrast to a loss of N12.5 billion in 2015.

Revenue went up by 120% from N48 billion to N105 billion, while gross profit increased by 556.8% to N29 billion compared to N4 billion in 2016. Capital market analysts described the company’s performance as heart-warming given that the company had recorded losses in the past.

Dangote Flour Mills consist of Dangote Flour, Dangote Pasta and Dangote Noodles. Having reacquired the flourmills, 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 company.

“Since the takeover, we have taken many 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, attributed the return to profitability to several strategies adopted by the company to increase market share and create value for shareholders. He noted that the company was driven by the vision of putting its products on the table of every Nigerian.