Nigeria's Dangote Flour Mills has returned to profitability after posting losses for a consecutive four years, the company said in a release on Thursday.
The company posted a profit before tax of 11.82 billion naira for its 2016 financial year.
A review of the results indicated that the group's operating profit went up to 16 billion naira, compared to a loss of 8.6 billion naira posted the previous year. Profit after tax rose to 10.6 billion naira in contrast to a loss of 12.5 billion naira in 2015.
Revenue went up by 120 percent from 48 billion naira to 105 billion naira, while gross profit increased by 556.8 percent to 29 billion naira, compared to 4 billion naira in 2016.
Capital market analysts described the company's performance as heartwarming given that the company had recorded losses in the past.
Dangote Flour Mills consist of Dangote Flour, Dangote Pasta, and Dangote Noodles. It was sold to Tiger Branded Consumer Goods, a South African firm, but later reacquired and re-positioned for good results.
Having reacquired the flour mills, 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 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.'
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 Dangote Flour Mills was driven by the vision of putting its products on the table of every Nigerian.
Dangote Flour Mills consist of Dangote Flour, Dangote Pasta, and Dangote Noodles. It was sold to Tiger Branded Consumer Goods, a South African firm, but later reacquired and re-positioned for good results.
Having reacquired the flour mills, 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 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.'
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 Dangote Flour Mills was driven by the vision of putting its products on the table of every Nigerian.
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