Dangote Flour, Nigeria’s largest importer and producer of flour and pasta products is reporting about NGN2 billion less than it made in net profit for the year 2016.
Dangote Flour ended the financial year 2016 with NGN105.7 billion revenue compared to NGN48.0 billion recorded in the financial year 2015. Its costs of sales for the period was NGN76.4 billion against NGN43.5 billion recorded in the year 2015.
The company recorded NGN29.3 billion gross profit in contrast to NGN4.4 billion recorded in the year 2015. Operating profit for the year was NGN18.9 billion against NGN4.1 billion loss recorded in the year before.
Dangote Flour recorded NGN11.8 billion profit before tax in the year in review against NGN12.4 billion loss recorded in the previous year.
After settling its tax for the year, its profit for the year increased to NGN10.5 billion against NGN12.6 billion loss recorded in the fiscal year 2015.
Total asset for the year was NGN78.9 billion in the year 2016 against NGN49.3 billion acquired in the year before. Total liabilities for the year rose to NGN56.7 billion versus NGN52.4 billion recorded in the year 2015.
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Dangote Flour Mills Plc commenced operations in 1999, as a division of Dangote Industries Limited (DIL) – one of Nigeria’s largest and fastest growing conglomerates. Following the strategic decision of DIL to unbundle its various operations, Dangote Flour Mills was incorporated in 2006.
The restructuring was completed in January, 2006 when the Federal High Court sanctioned a scheme of Arrangement wherein all the assets, liabilities and undertakings of the erstwhile flour division of DIL was transferred to Dangote Flour Mills.
From an initial installed capacity of 500 MT per day at its Apapa mill, Dangote Flour has expanded rapidly by opening in quick successions three other flour mills in Kano (2000), Calabar (2001) and Ilorin (2005). Each of the mills started with an installed capacity of 500 MT per day but all of them have subsequently.