Dangote Flour Mills posts N12 billion profit

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Dangote Flour Mills has posted a profit before tax of N11.82 billion for its financial year ended 31 December 2016.

According to the results released on the floor of the Nigerian Stock Exchange (NSE), the company has returned to profitability after four years of losses.

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 percent from N48 billion to N105 billion, while gross profit increased by 556.8 percent to N29 billion compared to N4 billion 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, 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.

“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,” says Ighodalo Asue, Dangote Flour Mills Chairman.

“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 notes that the Dangote Flour Mills was driven by the vision of putting its products on the table of every Nigerian.

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Thabo Mphahlele is the BizNis Africa Head of Sales and Marketing. Mphahlele was previously MultiChoice Production Support Analyst responsible for developing and monitoring applications. In addition, Mphahlele develops and automates batch scripts and is responsible for the daily infrastructure maintenance at MultiChoice. As a Production Support Analyst, he is responsible for incident analysis solving , developing and constructing business reports for SQL and Oracle and implement change controls for the business. Additional responsibility includes monitoring system performance via SOA, Kibaba (Elasticsearch), H.P BSM, HP Sitescope. Mphahlele is responsible for creating infrastructure performance reports through HP Ops Analytics, monitoring payments via Splunk and in-house built-in tool and disaster recovery simulation and testing. At Nashua Mobile, he was responsible for application development and enhancing the web sites At South West Gauteng College, he was the IT Technician and Network Administrator. During his tenure at Double Digit Media, he was he focused on application and web site development for new and existing clients Mphahlele contributes as a Content Manager for BizNis Africa.

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