Friday, 21 September 2012
Dangote Flour Records N2.61 billion Profit In First Quarter
Foremost flour Miller, Dangote Flour Mills has recorded N13.80 billion revenue for the first quarter ended March 31, 2012 and a gross profit of N2.61 billion within the same period. This is in disparity to N14.934 billion revenue recorded in the corresponding period of 2011.
The recorded profit was marred by high operational cost which depressed the profit margin of the company as it posted a N117 million loss after tax loss at the end of the quarter against a profit after tax of N441 million in 2011.
A statement released by the company assures that the management would continue to work hard so as to deliver improved returns to shareholders in the 2012 financial year especially with the soon-to- be completed expansion plan of the company in enlarging its manufacturing and packaging facilities.
“Dedicated plant for production of our wheat meal brand Alkama and Danvita would soon be ready for commissioning any moment from now. This would no doubt, tremendously boost our top line growth this year as plans are already in place to massively launch the products and increase the distribution networks to all the hinterlands.”
The company has significantly raised its capacity over the past decade in anticipation of soaring demand for bread flour and, more recently, semolina, pasta and noodles.
“The ongoing semolina mills of 1,500MT per day would come on stream by the end of the second quarter. This is a dedicated mill for the production of Danvita- our brand of semolina with the latest milling technology. This would definitely lead to product consistency of every bag of Danvita and for the complete satisfaction of the general public. Not only are we one of the very few flour millers in Nigeria that have mills dedicated to semolina production, we are the only dedicated mill with the highest number of production lines,” the statement added.
Dangote Flour Mills have also expanded its manufacturing capacities across the country with direct export into Chad, Cameroon, Niger and the West Coast.
The direct export goes on side by side with ongoing indirect export of Dangote Flour products through the activities of middlemen and customers.
The company plans to control a major chunk of the 295 million population within the Economic Community of West African States (ECOWAS) market, stressing that it remains thoroughly Nigeria-centric dedicating 80 per cent of its capacity to domestic market, and the remaining for the region.
To achieve its aim, the company has invested in ultra-modern technology, with machines that are between three months and nine years.