Dangote Flour Plc earnings up in second half

by Holly Demaree
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Dangote Flour Mills
 
LAGOS, NIGERIA – Dangote Flour Plc’s profit after tax for the quarter ended on June 30 totaled 3.155 billion naira, up from 1.921 billion naira in the second quarter of 2016. Revenue for the quarter was 35.810 billion naira, up compared to 15.776 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.

Profit after tax for the second half of 2017 equaled 5.571 billion naira, up from 1.020 billion naira in the second half of 2016. Dangote’s Flour Mill’s revenue for the first half was 64.855 billion naira, up in the second half from 26.488 billion naira.

The company’s flour segment revenue for the second half was 56.001 billion naira, an increase of about 30 billion naira to 20.290 billion naira in 2016. The flour segment includes the milling and sale of bread flour and confectionery flour.

Dangote’s pasta segment revenue was 7.982 billion naira, up from 3.649 billion naira in the same period of last year. The pasta segment consists of the manufacturing and sale of spaghetti and macaroni.

The noodle segment revenue for the first half of 2017 was 872.622 million naira, down from 2.509 billion naira in 2016. The noodle segment manufactures and sells noodles.

Dangote Flour Mills Plc commenced operations in 1999, as a division of Dangote Industries Limited. 

Following the decision of DIL to unbundle its various operations, Dangote Flour Mills Plc was incorporated in 2006. The restructuring was completed in January 2006, when all the assets, liabilities and undertakings of the flour division of DIL was transferred to Dangote Flour Mills Plc. 

From an initial installed capacity of 500 tonnes per day at its Apapa mill, Dangote Flour has expanded by opening three other flour mills in Kano (2000), Calabar (2001) and Ilorin (2005). 

All mills have a combined milling capacity of 4,800 tonnes per day.

On July 25, 2016, 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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