Dangote Flour Mills returns to profitability in 2016

by Holly Demaree
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Dangote Flour Mills
Tiger Brands had purchased the flour mill business from Dangote in 2012, but after years of losses and millions of dollars in writedowns, Tiger sold its 65.7% stake in the business back to Dangote.
 
LAGOS, NIGERIA —Dangote Flour Plc’s earnings for the year ended on Sept. 30 totaled 5.541 billion naira ($17.538 million), which compared with a loss of 12.679 billion naira in 2015. Revenue for the year was 78.107 billion naira, up compared to 48.026 billion naira in the previous year.

Dangote Flour Mills Plc is a Nigerian flour, pasta and rice company. Dangote Pasta Ltd. and Dangote Noodles Ltd. are subsidiaries of Dangote Flour Mills Plc.

The company’s flour segment profit for the year was 5.803 billion naira, which compared with a loss of 14.078 billion naira in 2015. The flour segment includes the milling and sale of bread flour and confectionery flour.

Dangote’s pasta segment profit for the year was 81.014 million naira, which compared with a loss of 1.924 billion naira in same period last year. The pasta segment consists of the manufacturing and sale of spaghetti and macaroni.

The noodle segment sustained a loss of 342.81 million naira, which compared with a loss of 1.329 billion naira in 2015. The noodle segment manufactures and sells noodles.

On July 25, Dangote Flour Mills Plc, formerly Tiger Branded Consumer Goods Plc, obtained a new certificate of incorporation from the Corporate Affairs Commission bearing the new name. The name change also was implemented by both the Nigerian Stock Exchange and the Central Securities Clearing System on July 25.

In April, Dangote Industries announced it would be making changes to the flour mill business it purchased back from Tiger Brands in December 2015.

The changes included renaming the business from Tiger Branded Consumer Goods Plc (TBCG) back to Dangote Flour Mills. Tiger had changed the name to TBCG in mid-2015, just months before it pulled funding for the business.

Tiger Brands had purchased the flour mill business from Dangote in 2012, but after years of losses and millions of dollars in writedowns, Tiger sold its 65.7% stake in the business back to Dangote for $1.
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