Months after its re-acquisition from Tiger Branded Consumers Goods, Dangote Flour Mills 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. Dangote Flour Mills consists 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 (NSE), 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 financial performance was a positive turnaround given that the Dangote Flour Mills recorded losses in the past. It was sold to Tiger Brands but later reacquired and re-positioned for good results.
Having reacquired the flour mills, 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 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 said.
Group Chief Executive Officer, Dangote Flour Mills, Thabo Mabe said the return to profitability follows several strategies adopted by the company to increase market share and create value for shareholders. He said that the flour mill is driven by the vision of putting its products on the table of every Nigerian.