Dangote Flour, Nigeria’s largest importer and producer of flour and pasta products is reporting 63% rise in profit to NGN3.1 billion for second quarter 2017 compared to NGN1.9 billion reported in the same period 2016.
Dangote flour ended the quarter with NGN35.8 billion revenue in contrast to NGN15.7 billion recorded in the previous year while costs of sales was higher at NGN27.4 billion against NGN21.7 billion posted in the year before.
The conglomerate said gross profit increased to NGN8.3 billion from NGN4.6 billion recorded in the fiscal year 2016 while operating profit rose to NGN5.5 billion against NGN2.4 billion in the financial year 2016.
Total asset was NGN112.2 billion compared to NGN61.5 billion in the year 2016 while total liabilities increased to NGN84.1 billion against NGN49.6 billion in the year before.
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.